
Borders CEO Flees Crumbling Company
(Borders article updated with CEO Ron Marshall's future plans, and movement in Borders stock price.)
ANN ARBOR, MICH. (
) --
Borders
(BGP)
CEO Ron Marshall is fleeing the company for another job, amid continued sinking sales for Borders.
The news sent shares of the company tanking 13.8% to 94 cents in late day trading.
It appears as if Marshall will be headed to
Great Atlantic & Pacific Tea
(GAP)
, better know as supermarket chain A&P, the
Wall Street Journal
reported.
Marshall took the reins at Borders last January. He was the founder of a private equity firm Wildridge Capital Management and had been brought on for his turnaround skills.
But last week
Borders reported that same-store sales tanked 14.6% during the holiday period
.
The company has reported three consecutive quarterly losses.
At the end of 2009, Borders said it would shutter about 200 Waldenbooks stores.
Chief Merchandising Officer Michael Edwards will now become interim CEO as the company looks for a new leader.
Investors are taking the shakeup as a positive sign for rival
Barnes & Noble
(BKS) - Get Report
, which is soaring 13% to $19.62.
-- Reported by Jeanine Poggi in New York.
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