Borders store closing
Borders, the second largest bookseller in the nation, is closing its Newburgh Mall store next month. “We”™ve had the signs up, and people are coming in,” said one employee, who declined to give her name. “It”™s very sad, but we knew this was coming for quite some time. I don”™t have another job lined up, so I don”™t know what I”™m going to do.”
Borders will continue to operate its two area “supercenters” ”“ one in Wappingers Falls and the other in the Galleria at Crystal Run in Middletown.
Borders has been restructuring since 2007, closing dozens of its smaller stores around the country.
Borders began as a used bookstore in 1971 in Ann Arbor, Mich. It reported $3.82 billion in sales in 20008, the bulk of that sum coming from its superstores, the rest coming from its smaller retail operations, including its Waldenbooks division.
“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,” said CEO Ron Marshall in a statement. “Through right-sizing, we will reduce the number of stores with operating losses, reduce our overall rent expense and lease-adjust leverage and generate cash flow through sales and working capital reductions.”
Borders closed nearly 120 stores in 2009, but says it will retain the 113 still remaining in some of its more profitable mall locations. Nationally, there are more than 500 Borders superstores.