Borders Group, Inc. BGP
The three reasons
- 1
Book superstore industry is misunderstood — Amazon risk is exaggerated and superstores have gained share
- 2
High-quality Superstores (29% unlevered ROIC) are obscured by money-losing Mall and International segments
- 3
Aggressive buybacks plus new CEO George Jones should accelerate value creation
Primary demands
- Monetize low-ROIC Mall Stores (Waldenbooks) and International segments to unlock ~$200mm of NWC
- Continue/accelerate aggressive share repurchase program (already ~$500mm in 2.5 years)
- Complete Superstore remodel program to reduce Music exposure and shift to higher-margin Paperchase + Seattle's Best Coffee
- Allow new CEO George Jones time to rationalize the business and realize full Superstore earnings power
KPIs cited
Pattern membership
Where this document fits across the library's 12 rhetorical / structural patterns.
Notable slides (8)
Notes
Classic Pershing Square 'misunderstood high-quality hidden inside a conglomerate' thesis, delivered as a long investment case (no villain, collaborative/analytical posture). Title 'Don't Judge a Book By Its Cover' is a strong thematic hook tied to the company. Explicit SCQA — starts with Traditional Sentiment (unattractive industry, 2nd-place operator, limited FCF) then rebuts each point. Clean sum-of-parts reveal on p.46. The 'Superstores as Mini Mall with tenants' framing on p.21 is a memorable reframe. Visually functional institutional deck (Pershing blue title bars, color-coded section headers) — not a top-tier design specimen. Outcome: investment ultimately unsuccessful — Borders declined and filed for bankruptcy in 2011.