It was not a good day for Borders Group Bookstores. After reported massive losses and dwindling sales the company learned they would be kicked out of the S&P MidCap 400. After all this, they announced they are not even contemplating a sale offer from Pershing Square Capital Management.
After the close of the market Borders announced a third quarter loss of $172.2 million, which equates to $2.85 a share. This time last year they were reporting a loss of $40 million, or 68 cents a share.
Standard & Poor's announced that since Borders' market capitalization had fallen to around a tenth of its requirement, the company will be replaced by precision instrument maker Mettler-Toledo International.
Borders' also announced that it has updated its "strategic alternatives process" which have included the sale of company and/or certain arms such as Paperchase Products. But according to Borders' the sale is now off the table. And this was Borders' decision not Pershings evidently.
The company said in a statement, "With respect to the sale of the company, management is no longer contemplating a transaction."
I guess this is why I am a blogger that has a following of 6 people and not the CEO of a major market Bookseller. But I would be at least entertaining the idea of selling my sinking ship to enthusiastic private equity bidders.