Borders announces plan to close 200 stores, including two in West Virginia

ANN ARBOR, Mich. -- Borders Group's announced that it will close approximately 200 of its Waldenbooks Specialty Retail mall stores in January.

As part of the plan two stores in West Virginia will be closed. In Bluefield, the Borders Express at the Mercer Mall is planned to close and in Morgantown the Waldenbooks at the Morgantown Mall is also set to close. 

In a prepared statement, the company said that the store closure list is not final and is subject to change pending finalization of agreements over the coming weeks. 

"America has a number of malls that continue to do well and draw customer traffic even in the current economy," said Borders Group Chief Executive Officer Ron Marshall. "We believe there remains an opportunity to profitably operate a much smaller Waldenbooks segment that complements our core Borders superstore business and continues to serve readers in their communities. Through this right-sizing, we will reduce the number of stores with operating losses, reduce our overall rent expense and lease-adjusted leverage and generate cash flow through sales and working capital reductions."

As long as the stores remain open, all will honor previously purchased gift cards, and gift cards can continue to be used in any Borders or Waldenbooks location or online at Borders.com. There will be no change in member status for customers who joined the Borders Rewards customer loyalty program at locations slated to close.

With the store closings in January, approximately 1,500 positions -- the majority of which are part-time jobs -- will be eliminated. Employees have been informed of the right-sizing plan and efforts will be made to place qualified individuals in other positions within Borders Group. Displaced employees will receive severance.

The mall-based right-sizing initiative has been ongoing at Borders Group for a number of years as the retailer has closed underperforming Waldenbooks Specialty Retail stores annually as part of its overall turnaround strategy. The company shuttered 112 stores in the segment in fiscal 2008 and from fiscal 2001 through 2007, closed an average of 66 stores per year within the Waldenbooks Specialty Retail segment.

Headquartered in Ann Arbor, Mich., Borders Group, Inc. is a leading specialty retailer of books as well as other educational and entertainment items. For more information about the company, visit borders.com/media .