ANN ARBOR – The Wall Street Journal reported Wednesday that Borders would move its headquarters to “cheaper office space in the greater Detroit metro area.”
The company is believed to have about 550 workers at its headquarters in Ann Arbor, down from about 1,800 several years ago.
The decision comes after Borders’ chief financial officer, Scott Henry, hinted in a March 11 call with publishers that the company was considering further reductions to its corporate office space.
Under Chapter 11 bankruptcy, Borders can renegotiate leases or cut leases altogether with the court’s approval. The company is simultaneously closing 226 superstores in an attempt to return to profitability and emerge from bankruptcy as a viable company
It was not known how fast Borders plans to move or whether the decision involves cutting staff.
Borders President Mike Edwards told the Wall Street Journal that the company doesn’t envision revenue growth until 2013 and that it would consider a sale of the company as a potential conclusion for the bankruptcy process.
Davis said Borders’ plans include “an innovative business model” that will include “aggressively growing Borders.com and expanding our eBook market share, expanding and enhancing our overall retail mix, including non-book offerings, and continuing to enhance our Borders Rewards Plus program.”
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