Borders has scored some solid base hits lately, by securing its debt and announcing its new eReader. But it's running for extra bases with its latest hit.
The Ann Arbor-based bookseller has secured $25 million in equity financing from former tobacco executive Bennett S. LeBow, who bought 11.1 million shares of common stock in the company. The investment makes LeBow the new chair of Borders' board of directors.
The capital infusion along with the recent refinancing of the company's debt is expected to strengthen the company's balance sheet. It will also help fund the transformation of the Borders brand, improve the company's capital position, maximize productivity in its store network and developing strategic business partnerships.
Borders currently employs about 19,500 people at its stores around the world. The number of stores and employees have been shrinking in recent years as Borders has struggled to deal with the rapidly changing environment of the book and media retailing world. It has regrouped in recent years, focusing on building up its online sales through Borders.com and entering the eReader world with the Kobo.
Source: Borders
Writer: Jon Zemke
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