March 21, 2008

Is Borders About To Go Belly Up?

Today's Detroit News reports in this story that Borders, the nations #2 bookseller, will consider putting itself up for sale in an attempt to save itself. Shares in the Ann Arbor-headquartered company fell more than 39% yesterday to close at $5.07 a share. Three years ago, it's shares traded at around $25.

Still, Borders might have a tough time finding interested buyers, analysts said, because of its shaky finances. "We see little opportunity in the near term for Borders to be sold," wrote Gary Balter, a Credit Suisse research analyst, in a Thursday note to investors. Given financials like the story reports, I kinda doubt that turning books face-out rather than spine out, thereby resulting in less choice, will turn things around.

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