Borders Group Inc. reported a slightly larger loss in the second quarter and said it will sell more items besides books as it readies for the crucial holiday season.
The company is also closing underperforming stores and introducing a paid loyalty program as it continues to battle tough competition from online retailers like Amazon.com and discount stores such as Walmart.
Since financier Bennett LeBow invested $25 million in the company in May and became CEO, Borders has made a variety of moves to shore up its struggling business, including selling its Paperchase stationery unit and introducing an electronic bookstore.
Borders introduced a paid loyalty program, where members pay $20 a year for access to discounts and free shipping.
Losses for the quarter ended July 31 totaled $46.7 million, or 67 cents per share. That compares with a loss of $45.6 million, or 76 cents per share, last year.
Revenue fell 12 percent to $526.1 million from $594.2 million.
Lamplight facility accepting residents
Lamplight Communities began accepting residents Wednesday at the downtown assisted-living center, 300 E. Washington Blvd.
The Toronto, Ohio-based company spent $4 million converting the former Fort Wayne Hotel and Conference Center into the Lamplight Inn of Fort Wayne.
The care facility will offer 170 rooms. Studios and one- and two-bedroom units are available for residents who will pay $2,700 a month for living quarters, meals and assistance at the operation.
Most residents likely will use Medicaid to help cover expenses, Lamplight officials said. Some seniors will occupy independent-living quarters.
An open house is scheduled Sept. 16.
Stock market kicks off month with big gains
Stocks jumped Wednesday after surprisingly strong growth in U.S. and Chinese manufacturing allayed some of the worries that had been building over the global economy in recent weeks.
The Dow Jones industrial average jumped 255 points on the first day of September. With investors pouring into stocks, Treasury prices fell and interest rates rose.
The new reports snapped a string of disappointing economic data that sent stocks slumping in August. The Standard & Poor’s 500 Index, the benchmark most widely used by professional investors, lost 4.7 percent in the month, its worst August performance since 2001.
$150 million fund set for bank-buy losses
Investors who lost money when Bank of America Corp. bought Merrill Lynch without disclosing Merrill’s problems can start applying to tap a $150 million compensation fund.
A federal judge Wednesday approved a detailed plan for distributing the money. The fund was set up as part of a settlement between the bank and the U.S. Securities and Exchange Commission.
The SEC charged that Bank of America withheld details that might have led shareholders to reject the Merrill deal. The bank didn’t mention Merrill’s plan to award $5.8 billion in bonuses after losing $27.6 billion that year.
Bank of America argued that the information was not important enough to warrant disclosure.
Shareholders as of Jan. 16, 2009, can apply for the money before Nov. 12.
