Borders investor's loss may total $200 million
The largest investor in Ann Arbor-based Borders Group Inc. is likely to incur a $200 million loss on his investment, according to a Wall Street Journal analysis.
New York hedge fund manager Bill Ackman, who manages Pershing Square Capital Management, had previously said that he expected to lose about $125 million on his investment in the troubled bookstore chain.
In early 2010, Ackman maintained that he viewed a Borders bankruptcy filing as unlikely. In December, he said he would be willing to finance an acquisition of competitor Barnes & Noble, but that idea never gained any traction.
Borders filed for Chapter 11 bankruptcy protection in February and has closed nearly 230 superstores. The company hopes to emerge from bankruptcy in September, though that plan hinges on the company's ability to convince publishers to agree to continue shipping books on different terms.
The loss didn't dent Ackman's pocketbook too terribly, though. In February 2011, the New York Post reported that Ackman purchased a $22 million beach estate on Ocean Road in Bridgehampton, N.Y.
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
Comments
snapshot
Sat, May 21, 2011 : 4:41 a.m.
How come I don't hear the union leaders taling about the loss of these "middle class" workers? Oh yeah, unions want hgher taxes for businesses so they can go bankrupt faster.
CynicA2
Fri, May 20, 2011 : 2:39 a.m.
Borders was small potatoes for Ackman and Pershing Square. I have read that he made hundreds of millions, if not billions, shorting bank stocks during the Great Financial Crisis a couple years ago. His investment in Borders was always a side show. He won't be missing any meals, or mortgage payments on that house in the Hamptons, anytime soon. Borders, though, is toast.
1bigbud
Thu, May 19, 2011 : 10:45 p.m.
Who needs a book with Amazon and others Even Henery Ford was able to read the writing on the wall No book needed SELL YOUR HORSE while you can
alan
Thu, May 19, 2011 : 11:41 p.m.
Still can't read a math book on a kindle.
alan
Thu, May 19, 2011 : 10:31 p.m.
Borders executive's losses may total........?
Silly Sally
Thu, May 19, 2011 : 9:35 p.m.
It is very sad to see the decline of this once great book retailer. Its hard to believe that a highly paid CEO allowed Borders internet sales to be through a competitor, Amazon. Madness
Tom Joad
Thu, May 19, 2011 : 9:34 p.m.
should have invested in LinkedIn
Kai Petainen
Thu, May 19, 2011 : 10:48 p.m.
linkedin is interesting. we're probably in for a social internet bubble. overpriced. the ceo said he was in for the long haul... but if they start selling shares after the lockup period.... that should raise some questions.