Borders Stocks Soars as Profit Doubles
NEW YORK (
) -- The worst for
Borders
(BGP)
could be over, as its fourth-quarter profit doubled and it repaid its loan to William Ackman.
The news is sending shares soaring 50% to $2.58 cents in morning trading.
During the quarter, Borders earned $59.9 million, or 91 cents a share, compared with $29.6 million, or 49 cents, in the year-ago period.
Still, there is plenty of work to be done, as Borders sales dropped 13% to $946.5 million, and same-store sales tumbled 14% at namesake stores and 8.5% at Waldenbooks.
Borders also said Wednesday evening that it repaid a $42.5 million loan from Ackman's investment firm
. The deadline for the loan was today, and had already been extended three times.
Borders closed on a new $90 million term credit facility and entered a new $700 million asset-based credit facility.
-- Reported by Jeanine Poggi in New York.
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