However sales were down as well. Total consolidated sales for the previous year ending January 31, 2009, were $3.2 billion, a 8.8% decrease from the previous year. The drop in sales was seen more acutely in the fourth quarter, where consolidated sales were $1.1 billion, a 12.9% decrease from 2007's figures.

"Our top priority is getting our financial house in order by continuing to reduce expenses, pay down debt and improve cash flow," says Borders CEO Ron Marshall. "We are working with vendors and others to enhance cooperation and are pleased to have the continued support of our largest shareholder with the recently announced extension of our financing agreement with Pershing Square. At the same time, we are focused on driving sales through improved execution and by re-engaging with our customers."

Earlier this week, Borders received a one-year extension on its $42.5 million senior secured term loan issued by Pershing Square Capital Management LP. The loan will now come due April 1, 2010.

During Q4, Borders saw a number of locations close throughout the country. The company closed five Borders Superstores, but opened one new one. At the end of the year, the company had 515 Superstores nation wide. Likewise, 84 Waldenbooks Specialty Retail locations were closed in Q4. A total of 112 of these locations closed throughout 2008, leaving 386 Waldenbooks locations across the country.

"In this economy, we expect sales trends to continue to be negative throughout 2009 and will manage the business accordingly," Marshall says. "We have planned only minimal capital expenditures and will continue to hold the line on our deeply reduced cost structure while remaining engaged with our vendors and others as we work to get the company on more firm financial footing. In addition, our efforts to drive the top line and improve margins will continue to intensify as we move forward."