Borders KOs Company Sale, Posts Wider Loss

Borders Group Inc. said Wednesday it’s no longer planning to sell the company.
Last winter, the direct marketer and retailer of books and recordings, put itself up for sale and has lined up $42.5 million to stay in business (Direct Newsline, March 21).
But Wednesday, the Ann Arbor, MI firm said in a statement that “management is no longer contemplating a transaction.”

In other news, Borders posted a net loss of $175.4 million for the third quarter, compared to a net loss of $161.1 million in the prior year.

The company reported sales of $682.1 million for the quarter ended Nov. 1, a 10% decrease from about $750.3 million last year.

The firm reported that gross margin as a percent of sales on an operating basis decreased to 20.8% in the quarter, a 1.4% decrease from 22.2% in the prior year.

Management attributed this in part to higher occupancy costs.