Borders' stock slips close to critical $1 threshold as holidays near
Investors seem to be pessimistic about Borders Group Inc.'s holiday prospects.
The stock for the Ann Arbor-based book store chain (NYSE: BGP) has lost about one-third of its value over the last month and a half. It closed at $1.06 today, down $0.06 today and $0.52 since Oct. 6.
The stock's slide comes as the holiday shopping season dawns. Borders is hoping that its electronic books offerings and new "non-book products" like Build-A-Bear stuffed animals boost sales. The firm also introduced a redesigned website last week and a new shipping offer in a bid to draw in more online customers.
Stocks that trade below $1 for an extended period of time are in danger of being de-listed by the New York Stock Exchange.
A Borders spokeswoman said the company does not comment on its stock price as a matter of company policy.
Borders employs some 600 workers at its corporate headquarters in Ann Arbor and 19,000 at more than 500 super stores worldwide.
The firm's sales have been on a continuous slide with no sign of a turnaround. In its second fiscal quarter, which ended July 31, Borders reported that its sales slipped 11.5 percent to $526.1 million. Sales at stores open at least a year declined 6.8 percent over the same period.
The company posted a loss of $46.7 million, up from a $45.6 million loss during the same period in 2009.