Ann Arbor, Mich. - Borders, the retailer of books, music and movies with 1,200 stores worldwide, this week announced plans to close nearly half of its Waldenbooks stores, end its relationship with Amazon.com and focus on its domestic superstores, after reporting disappointing results for its fiscal fourth quarter.

The company posted a loss of $73.6 million for the fourth quarter, compared with a profit of $119.1 million in the same period a year ago.

"Our company's performance has fallen short in an industry that is increasingly competitive, technology driven and price sensitive," said Borders CEO George Jones.

The company closed over 100 Waldenbooks stores last year, and plans to shutter another 264 underperforming stores by the end of 2008, reducing the total to around 300.

Borders also said it will sever ties with Amazon.com, which has fulfilled its Web orders since 2001, and launch its own new website in early 2008.

In addition to focusing on its domestic Borders superstores, the company also said it will launch a new concept store early next year.

"Our ultimate goal is to make Borders a vital community gathering place where people come together to see, touch, interact, and learn -- online and in-store," said Jones.

Related Links:
http://biz.yahoo.com/prnews/070322/clth029.html?.v=86

http://tinyurl.com/3y46vn (MarketWatch)

http://www.borders.com