ANN ARBOR, Michigan (
) -- Shares of bookseller
fell more than 7% in after-hours trading Thursday after reporting a wider third-quarter loss and a tumble in sales.
Borders reported a loss of $74.4 million, or $1.03 a share, wider than a year-earlier loss of $37.7 million, or 63 cents a share.
Sales plummeted 17.6% to $470.9 million and comparable-store sales dropped 12.6%.
"Our third-quarter results reflect the business challenges facing Borders and the industry at large," said CEO Mike Edwards, in a statement.
Borders could be facing a liquidity crunch after disclosing that the amount it can borrow under its credit facility has been reduced because the value of its inventory has fallen. Borders could violate its credit agreement by the first quarter of 2011 if its liquidity doesn't improve.
Borders, in a call with analysts, said it's in discussion with other possible lenders to replace its financing and is also considering selling some assets to improve its liquidity. It plans to close 16 stores during the fourth quarter, the
The stock fell 10 cents, or 7.3%, to $1.27 in after-hours trading Thursday. It had risen earlier in the week after hedge fund manager
said he was interested in funding Borders in a bid to buy larger rival
Barnes & Noble
-- Written by Joseph Woelfel
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