Borders cuts jobs at U.K. chain Paperchase
Portland, Ore. Borders Group has cut an undisclosed number of jobs at its British stationery and gift business Paperchase, according to the Associated Press.
Borders eliminated its corporate merchandising jobs at Paperchase and is handing those duties to individual stores, which the company says better understand what their customers want.
The company sells the Paperchase products at its Borders stores and 80 stand-alone Paperchase stores in the United Kingdom.
Borders appointed new leadership at Paperchase last year and has attempted to sell the business to help keep the parent company afloat.
The company said last month that its first-quarter revenue fell 16% from a year earlier to $547.2 million. Its international revenue, which includes Paperchase stores, rose nearly 4% to $22.4 million, but domestic revenue fell 16% to $520 million.
Borders hopes to reinvigorate itself with a $25 million investment from financier Bennett LeBow -- who became the company's largest shareholder and chairman and later was named CEO.
It also recently launched an electronic book reader and plans to enhance its online operation.