Borders Group Inc. has brought in turnaround specialist Ron Marshall, a veteran retail and financial executive who once worked at rival bookstore chain Barnes & Noble, to serve as president and CEO, succeeding George Jones, while also appointing three other senior executives. The retailer also reported that overall holiday sales for the nine-week period ended Jan. 3 fell 11.7% year-to-year to $868.8 million, as the new Borders.com compiled $20.3 million in sales.
Borders.com, which launched in late May 2008, accounted for 3% of all offline and online sales under the Borders brand during the nine-week holiday period. In consolidated Borders Group sales, which include $161.7 million for Waldenbooks stores and $34.3 million for the company’s international segment, Borders.com accounted for 2.3% of the total. Borders’ international segment includes U.K.-based Paperchase stores. The company operates more than 1,100 stores overall.
Borders.com continues to be led by vice president of e-business Kevin Ertell.
But for the corporate management, the company completed an overhaul.
“Progress has been made by Borders Group over recent quarters within the challenging economy to reduce debt, improve cash flow, cut expenses, enhance inventory productivity and improve margins, but it is imperative that the company more aggressively attack these initiatives to address its long-term future,” chairman Larry Pollock says. “We are confident that Ron Marshall, with his strong financial and turnaround expertise, vast retail experience and specific bookstore background, is the right choice to lead a new management team and boldly take these efforts to the next level.”
Marshall, 54, will also serve on the Borders board of directors. He most recently served as principal of Wildridge Capital Management, a private equity firm he founded about three years ago. Prior to Wildridge, Marshall was CEO of Nash Finch Co., a multi-billion-dollar retail and distribution organization, where he helped to drive a turnaround that quadrupled earnings over a six-year period, according to a statement by Borders.
Earlier, Marshall helped to drive another turnaround at supermarket chain Pathmark Stores Inc., where he served as executive vice president and chief financial officer from 1994 to 1998. Prior to Pathmark, Marshall served in senior management positions in a variety of retail companies including Dart Group Corp.’s Crown Books division and Barnes & Noble college bookstores.
Joining Marshall in the executive suite is Mark Bierley, who was named chief financial officer and executive vice president of finance, replacing Ed Wilhelm, who had been chief financial officer for eight years. Bierley has been with Borders since 1996, serving in inventory and financial positions, most recently as senior vice president, finance.
Borders named Anne Kubek executive vice president, merchandising and marketing, replacing Ron Gruen, who is leaving Borders after two years. Kubek joined Borders in 1990 as an assistant manager of the Borders store in Rockville, MD. She most recently served as senior vice president, Borders Stores, and has also filled vice president positions in the areas of human resources, book merchandising, and store operations.
Borders also promoted Dan Smith from executive vice president of human resources to the new position of chief administrative officer. In his new position, Smith will retain his human resources responsibilities but also oversee the company’s information technology group. The I.T. department is headed by chief information officer Susan Harwood, who is remaining with the company.
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