Borders Group Inc. is a leading global retailer of books, music, movies, and gift and stationery items. Borders is the 2nd largest US book seller. The company, through its subsidiaries, operates approximately 1,100 stores worldwide. The company is organized into three business segments: Borders domestic superstores, international stores, and Waldenbooks specialty retail.
On August 26, 2008 Borders announced that it narrowed its losses in the 2nd quarter 2008, losing $9.2 million or $0.15 a share, compared with a loss of $25.1 million or $0.43 a share for the same quarter of last year. The company, after suffering from liquidity problems earlier this year, has been controlling costs, including cutting jobs and inventory at its stores. These measures, put in place by Borders’ management, have narrowed the losses. The company said that it lost $11.3 million or $0.19 a share from its continuing operations, compared with a loss of $18.1 million or $0.31 a share last year.
Borders, which put itself up for sale in March 2008, continues to buck the headwinds of a weak US economy. Company CEO George Jones said, “Right now the book business has been affected by the slowing of the economy, like other things have as well. However, it’s still a very strong business.”
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