Borders is no longer for sale. The book chain had actively been seeking a buyer, but has scrapped those plans for now.
Company CEO George Jones said that after completing a thorough review of its options, the company determined it was best "to remain as we are," adding that he was "quite pleased" that the review is over and that Borders will remain an independent, publicly-traded company. The company still has the option to sell its Paperchase division to Pershing Square Capital, Borders's largest shareholder, for $65 million. That option expires Jan. 15. The company said it is talking to Pershing about different financing arrangements.
Similar to its competitors, Borders blamed a lack of customer traffic for the decline in sales, noting that the drop was most significant in September and October. Jones said the higher decline in comp stores compared to its competitors was due in part to its aggressive inventory reduction program which he acknowledged cost some sales. Jones said the decision to prune slow moving titles from Borders's store shelves was the right one, although he acknowledged the program "was not perfect." The company is starting to "fine tune" its inventory program and may return some books to stores, Jones said. According to Jones Borders is "well stocked" for the holidays. "It's a tough retail environment, but we feel we'll get our share of sales," Jones said.
All the bookstores are feeling the pinch of the recession as consumers cut back on discretionary spending. As for the holidays, we think that books are a great gift which is quite affordable. Of course you need to know the taste of the recipient, but there's always an Amazon.com, Borders or Barnes and Noble gift card.
