Borders Cuts Corporate Jobs by 20%
Ann Arbor, Mich. Borders Group announced Tuesday that it is cutting 156 corporate positions as a part of its previously announced plan to reduce annual expenses by $120 million. The eliminations are spread across virtually all departments of the chain’s Ann Arbor headquarters. Employees were informed of the job cuts Tuesday morning.
In addition, Borders Group has eliminated 118 corporate posts that are based outside its headquarters, impacting primarily corporate employees in distribution centers, the field marketing organization and the corporate sales division.
In total, the corporate payroll reduction eliminates approximately 20% of the company’s corporate positions but less than 1% of its total work force. The job cutbacks, with the exception of less than a handful of positions, are limited to corporate employees and do not involve store employees at the company’s 547 Borders superstores and 475 Waldenbooks Specialty Retail stores worldwide.
“While it is always difficult to eliminate jobs because of the impact on employees and their families, this is an important step in our company’s cost reduction initiative that will improve our profitability and put us in a much better position for long-term success,” Borders Group CEO George Jones said in a statement.
Staples to offer no-return DVD rentals
FRAMINGHAM, Mass. Staples, according to reports, is offering a new service that allows customers to rent DVDs at its stores without having to return them.
Starting in mid June, customers will be able to rent a limited selection of titles, which are on Flexplay DVDs that automatically erases the content after 48 hourse from opening the inner package. Customers can recycle the DVDs with other plastics.
Linens ‘N Things approved for DIP financing
CLIFTON, N.J. Linens ‘N Things reported that the United States Bankruptcy Court for the District of Delaware entered a final order approving the company’s $700 million Debtor-in-Possession (DIP) financing by General Electric Capital. The approval, granted during a Wednesday, May 28 hearing before Judge Christopher Sontchi, provides LNT with access to the capital necessary to meet its ongoing obligations during the restructuring process.
“We are pleased with the Court’s approval of our financing as it is an important step in our restructuring efforts,” said Michael Gries, chief restructuring officer and interim ceo. “It reinforces our commitment to the vendor community and to providing our guests with the assortment of merchandise and quality of service they have come to expect from Linens ‘N Things.”
Linens ‘N Things filed to reorganize under Chapter 11 on May 2 in the United States Bankruptcy Court for the District of Delaware. Interim approval of the DIP financing was granted on the same day.