Borders Group Loss Narrows in 1Q
Ann Arbor, Mich. Borders Group Inc. said its losses narrowed in the first quarter although its same-store sales fell, and Wall Street greeted Tuesday’s relaunch of the bookseller’s retail Web site with a sell-off of its shares.
Borders Group said it lost $31.7 million in the three months ending May 3, compared with a loss of $35.9 million for the comparable period of 2007.
The company said its results were hurt by store-closure costs, severance costs and fees related to strategic alternatives.
George Jones, Borders CEO, told the Associated Press that a restructuring announced last year is expected to save $120 million a year and already has significantly improved Borders’ cash flow. He said the cuts and the launch of the Web sales site will pay off in months to come.
“You’re going to see an interplay of the online world with the bricks-and-mortar world,” Jones said.
The company said its revenue fell 0.8% to $792.5 million from $798.7 million. Same-store sales at domestic superstores fell 4.1%.
Borders announced in March that it was putting itself up for sale, and Barnes & Noble said Thursday that it had assembled a management team to study the feasibility of a combination with Borders.
The Borders earnings report came hours after the company relaunched its own e-commerce site, Borders.com. The launch followed seven years of partnership with Amazon.com, during which time the Borders site took shoppers to a site partnered with Amazon. Borders expects its new site to break even this year and to be independently profitable in 2009.
Krupa in talks to represent Giantto
LAS VEGAS The Giantto Group, a Los Angeles-based jewelry company specializing in original custom jewelry, announced that it is in talks with supermodel Joanna Krupa to make her the new official spokesmodel for the group.
Krupa is set to make an appearance on June 1 at the JCK exhibition. A popular model, Krupa has appeared in GQ and FHM.
Big Lots names store ops vp
COLUMBUS, Ohio Big Lots has named Christopher Chapin as senior vp of store operations, effective immediately. Chapin will report to ceo Steve Fishman.
Chapin will oversee store standards, field operations, customer service, process development, and program implementation for the company’s 1,300+ closeout retail stores in 47 states.
Chapin most recently served as president of FacilitySource, a worldwide retail facility maintenance and management business headquartered in Secaucus, N.J. Previously, Chapin was with Limited Brands as vp of store operations and YUM Brands as national director of operations.