Borders looks at cost cutting move

ANN ARBOR, Mich., April 7 (UPI) -- Struggling retailer Borders Group Inc. said it was considering a move from its headquarters in Ann Arbor, Mich., home of the first Borders bookstore.

"We have determined that our current headquarters does not serve the needs of our business going forward and represents a cost that can be reduced," said company spokeswoman Mary Davis, The Detroit News reported Thursday.

"We are looking at many different options in the Greater Metro Detroit area, including possibilities in Ann Arbor," Davis said.

Analysts expect that Borders would likely move to a city near Ann Arbor to keep from causing a major disturbance in its corporate workforce.

Ann Arbor would lose a taxpayer, 747 company employees who dine and shop in Ann Arbor and a sentimental claim to fame, given the retailer's flagship store is still in Ann Arbor, the college town where the company began.

Ann Arbor Mayor John Hieftje said, "On the economic side, it's something we can absorb. Our area is very resilient."

But first, Borders must convince creditors that the company is still viable.

"I hope they can emerge from Chapter 11. But this will be an exceptionally difficult task," said book industry expert Al Greco, a marketing professor at Fordham University's Graduate School of Business in New York.