Borders Reports Down Q4, Gets Loan Extension31 Mar, 2009 By: Billy Gil
Borders Group reported net profit of $28.9 million in its fourth quarter ended Jan. 31, down from $67.3 million a year ago. Its revenue dropped 13% to $1.1 billion for the quarter, and comparable-store sales declined by 15.3% at Borders Superstores.
Meanwhile Borders received a one-year extension of the $42.5 million senior-secured-term loan from Pershing Square Capital Management, from April 15, 2009, to April 1, 2010.
The loan will continue on its current terms, including an interest rate of 9.8%.
“We are pleased to have the continued support of our largest shareholder as we focus on getting our company’s financial house in order,” said Borders Group CEO Ron Marshall.
Borders said same-store DVD sales at Superstores declined 39.7% for the quarter, with music CD sales down 36%.
The chain said it would downsize shelf space related to multimedia content, which includes DVDs and music, about 29% as part of ongoing restructuring, according to spokesperson Anne Roman.
Erik Gruenwedel contributed to this story.