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Two Key Borders Books Executives Resign

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Jan 03 – Jan 09, 2011 Edition Two Key Borders Books Executives Resign

Two senior executives at Borders Group, Inc. have resigned in the first week of the new year, according to an SEC filing today.

On January 2, 2011, Thomas D. Carney resigned as Executive Vice President, General Counsel and Secretary of Borders Group, Inc (the “Company”), and on January 3, 2011, D. Scott Laverty resigned as Senior Vice President, Chief Information Officer of the Company.

On December 31 Authorlink reported t hat Borders has decided to delay payments to some publishers as it continues refinancing talks.

The company announced a wider third-quarter loss and a drop in sales this month. Just days before the announcement, William Ackman offered to finance a Borders bid for Barnes & Noble (NYSE:BKS).

While Borders has been reporting losses for years, results have been getting worse as competition intensifies with Barnes & Noble (NYSE:BKS), Amazon.com (NASDAQ:AMZN), Wal-Mart Stores (NYSE:WMT), and Target (NYSE:TGT).

The company has launched an e-book initiative as it attempts to catch up with the competition. It remains to be seen if publishers will continue to ship inventory while payments are suspended.