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Borders Group (NYSE: BGP) is an international bookseller based in Ann Arbor, Michigan. Borders is a Fortune 500 company, and is (as of 2005) the second-largest bookstore chain in the United States (after Barnes & Noble), selling a wide variety of books, CDs, DVDs, periodicals, as well as gifts and stationery. Borders owns a majority stake in Paperchase Products Limited, a leading gifts and stationery retailer in the United Kingdom, and showcases their products in their stores, as well as Books etc., Tim Waterstone's other, mostly London-based bookshop chain. In 2004, Borders reached an agreement with Starbucks subsidiary Seattle's Best Coffee, and is converting their in-store cafes to the new brand. Some of Borders' in-store cafes in Australia have Gloria Jeans-branded coffee houses in place of Starbucks.
The original Borders bookstore is located in Ann Arbor, Michigan, where it was founded in 1971 by brothers Tom and Louis Borders. The Borders brothers' inventory system tailored each store's offerings to its community. A sister company, Book Inventory Systems (1971-1994), was founded at the same time to serve as a wholesaler for, and provide the brothers' custom inventory system to, regional independent bookstores such as John Rollins, Thackeray's, and Joseph-Beth Booksellers. Until Borders Superstore expansion occurred in the early 1990s, BIS serviced more independent stores than Borders stores. Former Hickory Farms president Robert F. DiRomualdo was hired in the late 1980s to expand the company exponentially. K-Mart acquired Borders' rival Waldenbooks in 1984, but a stock buyback enabled Borders and Waldenbooks to form its own corporation, the Borders Group. As of 2006, there are about 462 Borders stores in the United States, and around 700 Waldenbooks and Borders Express stores in U.S. malls. Borders also has another 41 stores in the United Kingdom, Australia, New Zealand, and Singapore, and 35 Books etc. stores throughout Britain. However due to the fierce competition in the UK marketplace a number of these Books etc. stores will be closed and will be replaced by larger Borders stores in retail parks on the edge of town, like in the case of the Manchester Books etc. store at the Printworks that was replaced by Borders at Manchester Fort.
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