Last week, the Borders chain — which in 30 years has grown from a single used bookshop largely serving students at the University of Michigan in Ann Arbor to a global empire, with stores in the U.K. and Australia among other places — announced that it would be undertaking a major restructuring. Its new strategic plan will (in the words of a press release) “revitalize, refocus, and ultimately reinvent the company to achieve its mission to be a headquarters for knowledge and entertainment.
So much for the usual nourishing corporate baloney. When you see that many “re-“ formations in an official statement, it’s a pretty reliable sign that steep cuts are planned. And so they are, in the wake of losses of more than $73 million that Borders suffered in 2006. Over the next year or two, Borders will close nearly half of its remaining Waldenbooks outlets in shopping malls (having already shut down a fifth of them in 2006) and scale back its overseas operations. It will also end its relationship with Amazon – clearing the way for “the debut of a new proprietary e-commerce site in early 2008.”
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