Borders disappoints in Q3
Ann Arbor, Mich. — Borders Group posted sales of $470.9 million for its third quarter ended Oct. 30, a decrease of 17.6% from the same period a year ago. Same-store sales declined by 12.6%.
The company posted a loss from continuing operations in the third quarter of $74.4 million, versus a loss $37.7 million a year ago.
“Our third quarter results reflect the business challenges facing Borders and the industry at large,” said Mike Edwards, CEO, Borders. “While we are disappointed with third quarter results, my management team and I continue to vigorously address these challenges and our commitment to winning at retail is stronger than ever.”
Edwards noted that the Borders Rewards Plus program has generated more than $11 million in membership revenue since launching just 100 days ago. He added that members shop more frequently and have a higher-than-average ticket driven by significantly higher units per transaction.
“In terms of other successes, we’ve also made substantial improvements to our stores, expanding the Kids section in 51 locations to drive further sales increases in our Kids Toys and Games category, which is outpacing most other areas of the business,” Edwards said. “We recently completed the addition of Area-e digital shops to stores to position Borders as a destination for all things eReading.”
Supervalu to sell logistic control unit to Ryder System
New York City — Supervalu has reached an agreement to sell its Total Logistic Control subsidiary to Ryder System for an undisclosed amount.
The subsidiary provides logistics and supply chain management solutions to manage distribution, warehouse and transportation operations for food, drink and packaged-goods companies.
Ryder, the buyer, said it expects the acquisition to add about $250 million in annual revenue to its supply chain solutions business segment. Ryder said it expects the deal to help its bottom line in 2011, excluding transaction costs. The sale, subject to closing conditions and regulatory approvals, is expected to close on Dec. 31.
New Edge Networks to become EarthLink Business
Atlanta — EarthLink announced that it has completed its acquisition of ITC DeltaCom, a leading provider of integrated communications services to customers in the southeastern United States, in a transaction valued at approximately $524 million.
With the close of the transaction EarthLink will begin integrating its New Edge Networks and EarthLink Business Services operations with Deltacom and will market the combined services under the ‘EarthLink Business’ brand name.
"With the addition of Deltacom’s deep fiber assets and strong customer relationships, EarthLink is creating a leading IP infrastructure and services company. We are pleased to have gained the regulatory approvals required to close this transaction in just ten weeks," said EarthLink chairman and CEO Rolla P. Huff. "Our new EarthLink Business division will offer a full complement of voice, data, mobile, and equipment services over a nationwide IP network with regional fiber density and favorable economics for any customer that has concentration in the Southeast region."