The departure of Ron Marshall last week as CEO of Borders Group, followed the next day by the elimination of 164 jobs, the majority coming in its corporate staff, has added grave uncertainty about the future of the bookstore chain. Marshall's decision to leave Borders for the A&P surprised publishers, but the announcement of job cuts was expected, given the chain's poor holiday sales (down nearly 15%) and the reduction in number of Walden outlets. A reduction in store staffs is expected soon.
According to a company spokesperson, interim CEO Michael Edwards spent his first few days on the job talking to employees and vendors, especially those suppliers that he has not had contact with in his role as head of merchandising. Since joining Borders in September, Edwards's focus has been on finding ways to drive traffic and build sales, and while Borders continues to cuts costs, Edwards is expected to devote as many resources as possible to boost sales.
None of the major initiatives started under Marshall—who took over for the ousted George Jones only a year ago—are expected to change. The company has already closed the 182 mall stores it had targeted as part of its plan to accelerate its exit from the smaller format outlets, and the retailer will also continue with its different digital book partnerships. Borders has no known timetable for naming a permanent successor for Marshall, and there are those in the industry who believe it will be extremely difficult to recruit an outsider to a company teetering on the brink of bankruptcy. When Marshall was hired last January, his appointment was viewed by many as Borders' last chance to remain a viable company.
