| [X]            |                                                   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OFTHE                                                                                                                                                                                                                                                                                      |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |                                                                          SECURITIES EXCHANGE ACT OF 1934                                                                                                                                                                    |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|           |                                                                    For      the quarterly period ended November 1, 2008                                                                                                                                                     |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|           |                                                                                                          OR |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| [  ] |                                                    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF  THE                                                                                                                                                                                                                                                                             |
|           |                                                                             SECURITIES EXCHANGE ACT OF 1934                                                                                                                                                  |

| MICHIGAN                             |   | 38-3294588                     |
|--------------------------------------|--------|--------------------------------|
| (State      or other jurisdiction of |   | (I.R.S.      Employer          |
| incorporation      or organization)  |   | Identification  No.) |

|   | Indicate      by check mark whether the registrant is a shell company (as defined in      Rule 12b-2 of the Act).    Yes   ̈    No  x |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                               |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                               |   |
|                                                                                                                                                                               | Page   |
| Part      I - Financial Information                                                                                                                                                |   |
|                                                                                                                                                                               |   |
|      Item      1.       Financial      Statements                                                                      | 1      |
|      Item      2.       Management's Discussion and      Analysis of                                                   |   |
|                              Financial Condition and Results of |   |
|                              Operations                         | 14     |
|      Item      3.       Quantitative and Qualitative      Disclosures about                                            |   |
|                         Market      Risk                   | 30     |
|      Item      4.       Controls and      Procedures                                                                   | 30     |
|      Item      4T.    Controls and Procedures                                                                                         | N/A    |
|                                                                                                                                                                               |   |
| Part      II - Other information                                                                                                                                                   |   |
|                                                                                                                                                                               |   |
|      Item      1.       Legal    Proceedings                                                                           | 30     |
|      Item      1A.    Risk Factors                                                                                                    | 30     |
|      Item      2.       Unregistered Sales of Equity      Securities and Use of Proceeds                                    | 33     |
|      Item      3.       Defaults Upon Senior      Securities                                                           | N/A    |
|      Item      4.       Submission of Matters to a      Vote of                                                        |   |
|                              Security holders                   | 33     |
|      Item      5.       Other    Information                                                                           | N/A    |
|      Item      6.       Exhibits                                                                                       | 33     |
|                         Signatures                         | 34     |
|                                                                                                                                                                               |   |

----

|                                                                                                                |   | 13      Weeks Ended  |    |
|---------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|
|                                                                                                                |   | November      1,2008 |    |   | November      3,2007 |   |
| Sales                                                                                                               |   | $                    | 682.1   |   |   | $ | 757.8 |   |
| Other      revenue                                                                                                  |   |                 | 11.3    |   |   |   | 7.4 |   |
|    Total      revenue                                                                                |   |                 | 693.4   |   |   |   | 765.2 |   |
|                                                                                                                |   |                 |    |   |   |   |   |   |
| Cost      of merchandise sold, including occupancy costs                                                            |   |                 | 546.6   |   |   |   | 598.5 |   |
|     Gross      margin                                                                           |   |                 | 146.8   |   |   |   | 166.7 |   |
|                                                                                                                |   |                 |    |   |   |   |   |   |
| Selling,      general and administrative expenses                                                                   |   |                 | 204.6   |   |   |   | 217.3 |   |
| Pre-opening      expense                                                                                            |   |                 | 0.3     |   |   |   | 1.3 |   |
| Asset      impairments and other writedowns                                                                         |   |                 | 50.1    |   |   |   | 1.4 |   |
|    Operating      loss                                                                               |   |                 | (108.2  | ) |   |   | (53.3 | ) |
|                                                                                                                |   |                 |    |   |   |   |   |   |
| Interest      expense                                                                                               |   |                 | 1.1     |   |   |   | 12.2 |   |
|    Loss      before income tax                                                                       |   |                 | (109.3  | ) |   |   | (65.5 | ) |
|                                                                                                                |   |                 |    |   |   |   |   |   |
| Income      taxes (benefit)                                                                                         |   |                 | 62.9    |   |   |   | (25.5 | ) |
|    Loss      from continuing operations                                                              |   |                 | (172.2  | ) |   |   | (40.0 | ) |
|                                                                                                                |   |                 |    |   |   |   |   |   |
| Loss      from operations of discontinued operations (net of income tax benefit of      $0.0 and $2.0)              |   |                 |  - |   |   |   | (3.6 | ) |
| Loss      from disposal of discontinued operations (net of income tax benefit of      $0.0 and $5.5)                |   |                 | (3.2    | ) |   |   | (117.5 | ) |
|    Loss      from discontinued operations (net of income tax benefit of $0.0 and      $7.5)          |   |                 | (3.2    | ) |   |   | (121.1 | ) |
|                                                                                                                |   |                 |    |   |   |   |   |   |
|    Net      loss                                                                                     |   | $                    | (175.4  | ) |   | $ | (161.1 | ) |
|                                                                                                                |   |                 |    |   |   |   |   |   |
|                                                                                                                |   |                 |    |   |   |   |   |   |
| Loss      per common share data                                                                                     |   |                 |    |   |   |   |   |   |
|    Diluted:                                                                                          |   |                 |    |   |   |   |   |   |
|      Loss      from continuing operations per common share                                 |   | $                    | (2.85   | ) |   | $ | (0.68 | ) |
|      Loss      from discontinued operations per common share                               |   | $                    | (0.05   | ) |   | $ | (2.06 | ) |
|                                                                                                                |   |                 |    |   |   |   |   |   |
|      Net      loss per common share                                                        |   | $                    | (2.90   | ) |   | $ | (2.74 | ) |
|          Weighted      average common shares outstanding (in millions) |   |                 | 60.5    |   |   |   | 58.8 |   |
|                                                                                                                |   |                 |    |   |   |   |   |   |
|    Basic:                                                                                            |   |                 |    |   |   |   |   |   |
|      Loss      from continuing operations per common share                                 |   | $                    | (2.85   | ) |   | $ | (0.68 | ) |
|      Loss      from discontinued operations per common share                               |   | $                    | (0.05   | ) |   | $ | (2.06 | ) |
|                                                                                                                |   |                 |    |   |   |   |   |   |
|       Net      loss per common share                                                  |   | $                    | (2.90   | ) |   | $ | (2.74 | ) |
|          Weighted      average common shares outstanding (in millions) |   |                 | 60.5    |   |   |   | 58.8 |   |
|                                                                                                                |   |                 |    |   |   |   |   |   |
| Dividends      declared per common share                                                                            |   | $                    | -       |   |   | $ | 0.11 |   |

----

|                                                                                                                |   | 39      Weeks Ended  |    |
|---------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|
|                                                                                                                |   | November      1,2008 |    |   | November      3,2007 |   |
| Sales                                                                                                               |   | $                    | 2,160.8 |   |   | $ | 2,313.8 |   |
| Other      revenue                                                                                                  |   |                 | 26.9    |   |   |   | 20.5 |   |
|    Total      revenue                                                                                |   |                 | 2,187.7 |   |   |   | 2,334.3 |   |
|                                                                                                                |   |                 |    |   |   |   |   |   |
| Cost      of merchandise sold, including occupancy costs                                                            |   |                 | 1,691.2 |   |   |   | 1,790.3 |   |
|     Gross      margin                                                                           |   |                 | 496.5   |   |   |   | 544.0 |   |
|                                                                                                                |   |                 |    |   |   |   |   |   |
| Selling,      general and administrative expenses                                                                   |   |                 | 620.2   |   |   |   | 651.6 |   |
| Pre-opening      expense                                                                                            |   |                 | 2.4     |   |   |   | 3.8 |   |
| Asset      impairments and other writedowns                                                                         |   |                 | 50.1    |   |   |   | 2.6 |   |
|    Operating      loss                                                                               |   |                 | (176.2  | ) |   |   | (114.0 | ) |
|                                                                                                                |   |                 |    |   |   |   |   |   |
| Interest      expense                                                                                               |   |                 | 7.2     |   |   |   | 32.7 |   |
|    Loss      before income tax                                                                       |   |                 | (183.4  | ) |   |   | (146.7 | ) |
|                                                                                                                |   |                 |    |   |   |   |   |   |
| Income      taxes (benefit)                                                                                         |   |                 | 30.2    |   |   |   | (58.7 | ) |
|    Loss      from continuing operations                                                              |   |                 | (213.6  | ) |   |   | (88.0 | ) |
|                                                                                                                |   |                 |    |   |   |   |   |   |
| Loss      from operations of discontinued operations (net of income tax benefit of      $0.9 and $7.1)              |   |                 | (1.7    | ) |   |   | (13.3 | ) |
| Loss      from disposal of discontinued operations (net of income tax benefit of      $3.1 and $6.9)                |   |                 | (1.0    | ) |   |   | (120.8 | ) |
| Loss      from discontinued operations (net of income tax benefit of $4.0 and      $14.0)                           |   |                 | (2.7    | ) |   |   | (134.1 | ) |
|                                                                                                                |   |                 |    |   |   |   |   |   |
|    Net      loss                                                                                     |   | $                    | (216.3  | ) |   | $ | (222.1 | ) |
|                                                                                                                |   |                 |    |   |   |   |   |   |
|                                                                                                                |   |                 |    |   |   |   |   |   |
| Loss      per common share data                                                                                     |   |                 |    |   |   |   |   |   |
|    Diluted:                                                                                          |   |                 |    |   |   |   |   |   |
|       Loss      from continuing operations per common share                           |   | $                    | (3.55   | ) |   | $ | (1.50 | ) |
|       Loss      from discontinued operations per common share                         |   | $                    | (0.04   | ) |   | $ | (2.28 | ) |
|                                                                                                                |   |                 |    |   |   |   |   |   |
|       Net      loss per common share                                                  |   | $                    | (3.59   | ) |   | $ | (3.78 | ) |
|          Weighted      average common shares outstanding (in millions) |   |                 | 60.2    |   |   |   | 58.7 |   |
|                                                                                                                |   |                 |    |   |   |   |   |   |
|    Basic:                                                                                            |   |                 |    |   |   |   |   |   |
|       Loss      from continuing operations per common share                           |   | $                    | (3.55   | ) |   | $ | (1.50 | ) |
|       Loss      from discontinued operations per common share                         |   | $                    | (0.04   | ) |   | $ | (2.28 | ) |
|                                                                                                                |   |                 |    |   |   |   |   |   |
|       Net      loss per common share                                                  |   | $                    | (3.59   | ) |   | $ | (3.78 | ) |
|          Weighted      average common shares outstanding (in millions) |   |                 | 60.2    |   |   |   | 58.7 |   |
|                                                                                                                |   |                 |    |   |   |   |   |   |
| Dividends      declared per common share                                                                            |   | $                    | -       |   |   | $ | 0.33 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                 |               |   |                 |   |               |                 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------------------|--------|----------------------|--------|--------------------|----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | November      1,2008 |               |   | November      3,2007 |   |               | February      2,2008 |   |
| Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                 |               |   |                 |   |               |                 |   |
| Current      assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                 |               |   |                 |   |               |                 |   |
|    Cash      and cash      equivalents                                                                                                                                 |   | $                    | 38.4               |   |                 | $      | 61.1               |                 |   | $ | 58.5 |   |
|    Merchandise      inventories                                                                                                                                        |   |                 | 1,256.5            |   |                 |   | 1,560.7            |                 |   |   | 1,242.0 |   |
|    Accounts      receivable and other current      assets                                                                                                              |   |                 | 99.6               |   |                 |   | 100.0              |                 |   |   | 103.5 |   |
|    Taxes,      including income      taxes                                                                                                                             |   |                 | -                  |   |                 |   | 9.7                |                 |   |   | - |   |
|    Current      assets of discontinued      operations                                                                                                                 |   |                 | -                  |   |                 |   | 107.7              |                 |   |   | 102.0 |   |
|          Total      current      assets                                                                                                  |   |                 | 1,394.5            |   |                 |   | 1,839.2            |                 |   |   | 1,506.0 |   |
| Property      and equipment, net of accumulated depreciation of $1,124.4,      $944.8 and $1,007.8 at November 1, 2008, November 3,  2007 and      February 2, 2008, respectively                                                                                                                                                                                                                                                                                                                                                                                            |   |                 |    521.3 |   |                 |   |    608.6 |                 |   |   |   592.8 |   |
| Other      assets                                                                                                                                                                     |   |                 | 63.4               |   |                 |   | 66.5               |                 |   |   | 64.9 |   |
| Deferred      income      taxes                                                                                                                                                       |   |                 | 27.3               |   |                 |   | 55.4               |                 |   |   | 44.9 |   |
| Goodwill                                                                                                                                                                              |   |                 | 40.5               |   |                 |   | 40.3               |                 |   |   | 40.5 |   |
| Noncurrent      assets of discontinued      operations                                                                                                                                |   |                 | -                  |   |                 |   | 52.6               |                 |   |   | 53.6 |   |
|          Total      assets                                                                                                               |   | $                    | 2,047.0            |   |                 | $      | 2,662.6            |                 |   | $ | 2,302.7 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                 |               |   |                 |   |               |                 |   |   |   |   |
|            Liabilities, Minority Interest      and Stockholders’ Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                 |               |   |                 |   |               |                 |   |   |   |   |
| Current      liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |               |   |                 |   |               |                 |   |   |   |   |
|    Short-term      borrowings and current portion of long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $                    | 518.0              |   |                 | $      | 789.5              |                 |   | $ | 548.6 |   |
|    Trade      accounts      payable                                                                                                                                    |   |                 | 613.2              |   |                 |   | 744.3              |                 |   |   | 511.9 |   |
|    Accrued      payroll and other      liabilities                                                                                                                     |   |                 | 243.0              |   |                 |   | 285.1              |                 |   |   | 321.6 |   |
|    Taxes,      including income      taxes                                                                                                                             |   |                 | 36.5               |   |                 |   | -                  |                 |   |   | 18.3 |   |
|    Deferred      income      taxes                                                                                                                                     |   |                 | 32.0               |   |                 |   | 21.2               |                 |   |   | 9.9 |   |
|    Current      liabilities of discontinued      operations                                                                                                            |   |                 | -                  |   |                 |   | 61.7               |                 |   |   | 57.5 |   |
|          Total      current      liabilities                                                                                             |   |                 | 1,442.7            |   |                 |   | 1,901.8            |                 |   |   | 1,467.8 |   |
| Long-term      debt                                                                                                                                                                   |   |                 | 7.4                |   |                 |   | 5.3                |                 |   |   | 5.4 |   |
| Other      long-term      liabilities                                                                                                                                                 |   |                 | 353.9              |   |                 |   | 317.4              |                 |   |   | 325.0 |   |
| Noncurrent      liabilities of discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                 | -                  |   |                 |   | 22.9               |                 |   |   | 25.4 |   |
|          Total      liabilities                                                                                                          |   |                 | 1,804.0            |   |                 |   | 2,247.4            |                 |   |   | 1,823.6 |   |
| Minority      interest                                                                                                                                                                |   |                 | 2.0                |   |                 |   | 2.2                |                 |   |   | 2.2 |   |
|          Total      liabilities and minority      interest                                                                               |   |                 | 1,806.0            |   |                 |   | 2,249.6            |                 |   |   | 1,825.8 |   |
| Stockholders'      equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                 |               |   |                 |   |               |                 |   |   |   |   |
| Common      stock; 300,000,000 shares authorized;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |               |   |                 |   |               |                 |   |   |   |   |
|   60,538,934      , 58,751,761 and 58,794,224 shares issued                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                 |               |   |                 |   |               |                 |   |   |   |   |
|    and      outstanding at November 1, 2008, November 3, 2007 and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                 |               |   |                 |   |               |                 |   |   |   |   |
|    February      2, 2008,      respectively                                                                                                                            |   |                 | 189.3              |   |                 |   | 182.0              |                 |   |   | 184.0 |   |
| Accumulated      other comprehensive      income                                                                                                                                      |   |                 | 17.5               |   |                 |   | 38.6               |                 |   |   | 42.4 |   |
| Retained      earnings                                                                                                                                                                |   |                 | 34.2               |   |                 |   | 192.4              |                 |   |   | 250.5 |   |
|          Total      stockholders'      equity                                                                                            |   |                 | 241.0              |   |                 |   | 413.0              |                 |   |   | 476.9 |   |
|          Total      liabilities, minority interest and stockholders' equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                    | 2,047.0            |   |                 | $      | 2,662.6            |                 |   | $ | 2,302.7 |   |

----

|                                                                                                                                                                                                                                                              |                                      |                                                                        |                                |                          |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|-----------------------------------------------------------------------------|-------------------------------------|-------------------------------|
|                                                                                                                                                                                                                                                              |     Common      Stock |   AccumulatedOtherComprehensive                                   |     Retained    |                          |
|                                                                                                                                                                                                                                                              | Shares                                    | Amount                                                                      | Income                              | Earnings                      | Total |
| Balance      at February 2,      2008                                                                                                | 58,794,224                                | $  184.0                                                          | $42.4                               | $      250.5                  | $      476.9 |
| Net      loss                                                  | -                                         |      -                                             |   -                       |   (216.3)           |    (216.3) |
|  Discontinued      operations currency translation adjustment                                                                                                                                                                                                | -                                         |      -                                             |     (17.1)      |   -                 |    (17.1) |
| Currency      translation adjustment                                                                                                                                                                                                                              | -                                         |      -                                             |      (7.8) |   -                 |                                                                                        (7.8) |
| Comprehensive      loss                                        |                                      |                                                                        |                                |                          |   (241.2) |
| Issuance      of      common stock                                            |  1,744,710                           |             5.1 |   -                       |   -                 |   5.1 |
| Tax      benefit of equity compensation                                                                                                                                                                                                                           | -                                         |                  0.2 |   -                       |   -                 |   0.2 |
| Balance      at November 1, 2008                                                                                                                                                                                                              |           60,538,934  | $ 189.3                                                                | $      17.5                         | $    34.2 |           $      241.0 |
|                                                                                                                                                                                                                                                              |                                      |                                                                        |                                |                          |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 39      weeks Ended  |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | November      1,2008 |    |   | November      3,2007 |   |
| Cash      provided by (used for):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 |    |   |   |   |
|    Net      loss                                                                                                                                                                                                                                         |   | $                    | (216.3  | ) |   | $ | (222.1 | ) |
|    Loss      from discontinued      operations                                                                                                                                                                                                           |   |                 | (2.7    | ) |   |   | (134.1 | ) |
|    Loss      from continuing      operations                                                                                                                                                                                                             |   |                 | (213.6  | ) |   |   | (88.0 | ) |
| Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                 |    |   |   |   |   |   |
|    Adjustments      to reconcile loss from continuing operations to   operating      cash flows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                 |    |   |   |   |   |   |
|       Depreciation                                                                                                                                                                                                                        |   |                 | 82.4    |   |   |   | 74.2 |   |
|       Loss      on disposal of      assets                                                                                                                                                                                                |   |                 | 3.0     |   |   |   | 2.9 |   |
|       Increase      (decrease) in deferred income      taxes                                                                                                                                                                              |   |                 | 39.5    |   |   |   | (5.3 | ) |
|       Decrease      (increase) in other long-term      assets                                                                                                                                                                             |   |                 | 0.3     |   |   |   | (1.0 | ) |
|       Increase      (decrease) in other long-term      liabilities                                                                                                                                                                        |   |                 | (10.0   | ) |   |   | 10.0 |   |
|       Asset      impairments and other      writedowns                                                                                                                                                                                    |   |                 | 48.4    |   |   |   | - |   |
|    Cash      provided by (used for) current assets and current    liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                 |    |   |   |   |   |   |
|       Increase      in      inventories                                                                                                                                                                                                   |   |                 | (19.4   | ) |   |   | (266.2 | ) |
|       Decrease      in accounts      receivable                                                                                                                                                                                           |   |                 | 22.0    |   |   |   | 27.5 |   |
|       (Increase)      decrease in prepaid      expenses                                                                                                                                                                                   |   |                 | 1.1     |   |   |   | (1.5 | ) |
|       Increase      in trade accounts      payable                                                                                                                                                                                        |   |                 | 103.5   |   |   |   | 172.9 |   |
|       Increase      (decrease) in taxes      payable                                                                                                                                                                                      |   |                 | 18.6    |   |   |   | (21.2 | ) |
|       Decrease      in expenses payable and accrued liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                 | (66.4   | ) |   |   | (4.9 | ) |
|         Net      cash provided by (used for) operating activities ofcontinuing        operations                                                                                        |   |                 | 9.4     |   |   |   | (100.6 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                 |    |   |   |   |   |   |
| Investing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                 |    |   |   |   |   |   |
|    Capital      expenditures                                                                                                                                                                                                                             |   |                 | (72.0   | ) |   |   | (104.7 | ) |
|     Proceeds      from the sale of discontinued      operations                                                                                                                                                                                     |   |                 | 94.5    |   |   |   |  20.4 |   |
|         Net      cash provided by (used for) investing activities ofcontinuing        operations                                                                                        |   |                 | 22.5    |   |   |   | (84.3 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                 |    |   |   |   |   |   |
| Financing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                 |    |   |   |   |   |   |
|    Proceeds      from the excess tax benefit of stock option exercises                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                 | 0.2     |   |   |   | 0.1 |   |
|    Net      funding from (repayment of) credit      facility                                                                                                                                                                                             |   |                 | (71.1   | ) |   |   | 285.0 |   |
|    Funding      from short-term note      financing                                                                                                                                                                                                      |   |                 | 42.5    |   |   |   | - |   |
|    Issuance      of long-term      debt                                                                                                                                                                                                                  |   |                 | 1.2     |   |   |   | - |   |
|    Repayment      of long-term      debt                                                                                                                                                                                                                 |   |                 | (0.4    | ) |   |   | (0.2 | ) |
|    Issuance      of common      stock                                                                                                                                                                                                                    |   |                 | 5.1     |   |   |   | 6.5 |   |
|    Payment      of cash      dividends                                                                                                                                                                                                                   |   |                 | (6.5    | ) |   |   | (19.4 | ) |
|       Net      cash provided by (used for) financing activities ofcontinuing      operations                                                                                                                |   |                 | (29.0   | ) |   |   |  272.0 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                 |    |   |   |   |   |   |
| Effect      of exchange rates on cash and cash equivalents of continuing      operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |  - |   |   |   |  0.1 |   |
|  Net      cash used for operating activities of discontinued    operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                 | (19.3   | ) |   |   | (72.6 | ) |
| Net      cash used for investing activities of discontinued    operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                 | (6.5    | ) |   |   | (14.4 | ) |
| Net      cash used for financing activities of discontinued    operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                 | -       |   |   |   | (38.5 | ) |
| Effect      of exchange rates on cash and cash equivalents of discontinued      operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                 | 2.8     |   |   |   |  1.8 |   |
| Net      cash used for discontinued      operations                                                                                                                                                                                                                     |   |                 | (23.0   | ) |   |   | (123.7 | ) |
| Net      decrease in cash and cash      equivalents                                                                                                                                                                                                                     |   |                 | (20.1   | ) |   |   | (36.5 | ) |
| Cash      and cash equivalents at beginning of      year                                                                                                                                                                                                                |   |                 | 58.5    |   |   |   | 97.6 |   |
| Cash      and cash equivalents at end of      period                                                                                                                                                                                                                    |   | $                    | 38.4    |   |   | $ | 61.1 |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 13      Weeks Ended  |   |   | 39      Weeks Ended  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | November      1,2008 |   |   | November      3,2007 |   |   |                      November      1,2008 |             November 3,2007 |   |
| Sales                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                 |   |   |                 |   |   |   |   |   |
|       Domestic      Borders      Superstores                                                           |   | $                    | 548.4  |   |                 | $ | 615.8 |   |   | $ | 1,763.6 |   | $ | 1,889.4 |
|       Borders.com                                                                                      |   |                 | 11.9   |   |                 |   | - |   |   |   | 19.3 |   |   | - |
|       Waldenbooks      Specialty      Retail                                                           |   |                 | 91.5   |   |                 |   | 109.7 |   |   |   | 284.4 |   |   | 334.5 |
|       International                                                                                    |   |                 | 30.3   |   |                 |   | 32.3 |   |   |   | 93.5 |   |   | 89.9 |
| Total      sales                                                                                                                     |   | $                    | 682.1  |   |                 | $ | 757.8 |   |   | $ | 2,160.8 |   | $ | 2,313.8 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |   |   |                 |   |   |   |   |   |   |   |   |   |   |
| Operating      income (loss)                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |   |   |                 |   |   |   |   |   |   |   |   |   |   |
|       Domestic      Borders      Superstores                                                           |   | $                    | (80.3  | )      |                 | $ | (31.9 | ) |   | $ | (118.0 | ) | $ | (56.8) |
|       Waldenbooks      Specialty      Retail                                                           |   |                 | (17.7  | )      |                 |   | (20.5 | ) |   |   | (39.0 | ) |   | (46.9) |
|       International                                                                                    |   |                 | (1.8   | )      |                 |   | 1.8 |   |   |   | (1.8 | ) |   | 0.7 |
|       Corporate                                                                                        |   |                 | (8.4   | )      |                 |   | (2.7 | ) |   |   | (17.4 | ) |   | (11.0) |
| Total      operating income      (loss)                                                                                              |   | $                    | (108.2 | )      |                 | $ | (53.3 | ) |   | $ | (176.2 | ) | $ | (114.0) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |   |   |                 |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                 |   |   |                 |   |   |   |   |   |   |   |   |   |   |
|       Domestic      Borders      Superstores                                                           |   |                 |   |   |                 |   |   |   |   | $ | 1,607.6 |   | $ | 1,886.5 |
|       Waldenbooks      Specialty      Retail                                                           |   |                 |   |   |                 |   |   |   |   |   | 278.5 |   |   | 365.3 |
|       International                                                                                    |   |                 |   |   |                 |   |   |   |   |   | 81.9 |   |   | 112.3 |
|       Corporate                                                                                        |   |                 |   |   |                 |   |   |   |   |   | 79.0 |   |   | 138.2 |
| Total      assets of continuing operations                                                                                                                                                                                                                                                                                                                                                                                             |   |                 |   |   |                 |   |   |   |   | $ | 2,047.0 |   | $ | 2,502.3 |
|       Discontinued      operations                                                                     |   |                 |   |   |                 |   |   |   |   |   | - |   |   | 160.3 |
| Total      assets                                                                                                                    |   |                 |   |   |                 |   |   |   |   | $ | 2,047.0 |   | $ | 2,662.6 |

|                                                                                                                                                                                                                                                                                                                                      |   | 13      Weeks Ended  |   |   | 39      Weeks Ended  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                      |   | November      1,2008 |   |   | November      3,2007 |   |   | November      1,2008 |   |   | November      3,2007 |   |
|       Domestic      Borders Superstores                                                                                                                                                                                                                                                                     |   | $                    | 2.0    |   |                 | $      | 2.8 |   |   | $ | 5.7 |   |   | $ | 8.3 |   |
|       Waldenbooks      Specialty Retail                                                                                                                                                                                                                                                                     |   |                 | 0.5    |   |                 |   | 0.4 |   |   |   | 1.4 |   |   |   | 0.4 |   |
| Total                                                       |   | $                    | 2.5    |   |                 | $      | 3.2 |   |   | $ | 7.1 |   |   | $ | 8.7 |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                     |                 | 13      Weeks Ended   |     | 39      weeks Ended   |   |                  |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|-----------------------|----------|-----------------------|--------|-----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                     |                 | November      1, 2008 |     | November      3, 2007 |   | November      1, 2008 |   |   | November      3, 2007 |   |   |   |
| Total      revenue                                                                  |                 | $                     | -        |                  | $      | 98.3                  |   | $ | 80.8 |   |   | $ | 371.7 |   |   |   |
| Loss      from operations of discontinued operations before income    tax                                                                                                                                                                                                                                                                                                                                                |                 |                  |  -  |                  |   | (5.6                  | )      |   |         (2.6 | ) |   |   |         (20.4 | ) |   |   |
| Loss      from operations of discontinued operations (net of income tax benefit of      $0.0, $2.0, $0.9, and $7.1, respectively)                                                                                                                                                                                                                                                                                        |                 |                  |   - |                  |   | (3.6                  | )      |   | (1.7 | ) |   |   | (13.3 | ) |   |   |
| Loss      on disposal of discontinued operations (net of income tax benefit $0.0,      $5.5, $3.1, and $6.9, respectively)                                                                                                                                                                                                                                                                                               |                 |                  | (3.2     | )                     |   | (117.5                | )      |   | (1.0 | ) |   |   | (120.8 | ) |   |   |
| Loss      from discontinued operations (net of income tax benefit of $0.0, $7.5,      $4.0, and $14.0, respectively)                                                                                                                                                                                                                                                                                                     |                 |                  | (3.2     | )                     |   | (121.1                | )      |   | (2.7 | ) |   |   | (134.1 | ) |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                     |                 |                  |     |                  |   |                  |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                     | November 3,2007 |                  |
| Cash      and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                           | $                    | 4.4                   |     |
| Merchandise      inventories                                                                                                                                                                                                                                                                                                                                                                                             |                 | 89.3                  |     |
| Accounts      receivable and other current assets                                                                                                                                                                                                                                                                                                                                                                        |                 | 8.2                   |     |
| Taxes,      including income taxes                                                                                                                                                                                                                                                                                                                                                                                       |                 | 5.8                   |     |
| Current      assets of discontinued operations                                                                                                                                                                                                                                                                                                                                                                           |                 | 107.7                 |     |
| Property      and equipment (net of accumulated depreciation)                                                                                                                                                                                                                                                                                                                                                            |                 | 42.1                  |     |
| Other      assets                                                                                                                                                                                                                                                                                                                                                                                                        |                 | 10.5                  |     |
| Noncurrent      assets of discontinued operations                                                                                                                                                                                                                                                                                                                                                                        |                 | 52.6                  |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                     |                 |                  |     |
| Short-term      borrowings and current portion of long-term debt                                                                                                                                                                                                                                                                                                                                                         |                 | 3.7                   |     |
| Accounts      payable                                                                                                                                                                                                                                                                                                                                                                                                    |                 | 38.0                  |     |
| Accrued      payroll and other liabilities                                                                                                                                                                                                                                                                                                                                                                               |                 | 20.0                  |     |
| Current      liabilities of discontinued operations                                                                                                                                                                                                                                                                                                                                                                      |                 | 61.7                  |     |
| Long-term      liabilities                                                                                                                                                                                                                                                                                                                                                                                               |                 | 22.9                  |     |
| Noncurrent      liabilities of discontinued operations                                                                                                                                                                                                                                                                                                                                                                   |                 | 22.9                  |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                     |                 |                  |     |

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| NOTE 7 —      FAIR VALUE MEASUREMENTS In      February 2008, the Company adopted FASB Statement of Financial Accounting      Standards No. 157, “Fair Value Measurements” (FAS 157), which      provides a consistent definition of fair value that focuses on exit price      and prioritizes, within a measurement of fair value, the use of      market-based inputs over entity-specific inputs. FAS 157 requires expanded      disclosures about fair value measurements and establishes a three-level      hierarchy for fair value measurements based on the observability of inputs      to the valuation of an asset or liability as of the measurement date. The      standard also requires that a company consider its own nonperformance risk      when measuring liabilities carried at fair value, including derivatives.      In February 2008, the FASB approved FASB Staff Position No. 157-2,      “Effective Date of FASB Statement No. 157” (FSP No. 157-2), that      permits companies to partially defer the effective date of FAS 157 for one      year for nonfinancial assets and nonfinancial liabilities that are      recognized or disclosed at fair value in the financial statements on a      nonrecurring basis. FSP No. 157-2 does not permit companies to defer      recognition and disclosure requirements for financial assets and financial      liabilities or for nonfinancial assets and nonfinancial liabilities that      are remeasured atleast      annually. FAS 157 is effective for financial assets and financial      liabilities and for nonfinancial assets and nonfinancial liabilities that      are remeasured at least annually for fiscal years beginning after      November 15, 2007 and interim periods within those fiscal years. The      provisions of FAS 157 are applied prospectively. The Company has decided      to defer adoption of FAS 157 for one year for nonfinancial assets and      nonfinancial liabilities that are recognized or disclosed at fair value in      the financial statements on a nonrecurring basis. The effect of the      adoption of FAS 157 on February 3, 2008 was not material and no adjustment      to retained earnings was required. NOTE 8 —      PERSHING SQUARE FINANCING ARRANGEMENT On      April 9, 2008, the Company completed a financing agreement with      Pershing Square on behalf of certain of its affiliated investment funds.      Under the terms of the agreement, Pershing Square has loaned $42.5 to the      Company and will purchase, at the Company’s discretion, certain of the      Company’s international businesses pursuant to an initial $135.0 backstop      purchase commitment. The terms of the Pershing Square financing agreement      have been approved by the lenders under the Company’s current revolving      credit facility, and the revolving credit facility has been amended      accordingly. Based on current internal projections, the Company believes      that the financing agreement with Pershing Square will allow the Company      to be fully funded during fiscal 2008, where absent these measures,      liquidity issues may otherwise have arisen during the year. The      financing agreement with Pershing Square consists of three main      components: 1. A      $42.5 senior secured term loan maturing January 15, 2009 with an      interest rate of 9.8% per annum. The term loan is secured by an indirect      pledge of approximately 65% of the stock of Paperchase pursuant to a Deed      of Charge Over Shares. In the event that Paperchase is sold, all proceeds      from the sale are required to be used to prepay the term loan. The      representations, covenants and events of default therein are otherwise      substantially identical to the Company’s existing Multicurrency Revolving      Credit Agreement (as amended, the “Credit Agreement”), other than some      relating to Paperchase. Such exceptions are not expected to interfere with      the operations of Paperchase or the Company in the ordinary course of      business. 2. A      backstop purchase offer that gave the Company the right but not the      obligation, until January 15, 2009, to require Pershing Square to      purchase its Paperchase, Australia, New Zealand and Singapore      subsidiaries, as well as its interest in Bookshop Acquisitions, Inc.      (Borders U.K.) after the Company has pursued a sale process to maximize      the value of those assets. Pursuant to this sale process, the Company sold      its Australia, New Zealand and Singapore subsidiaries during the second      quarter of 2008 to companies affiliated with A&R Whitcoulls Group      Holdings Pty Limited.  Pershing Square’s remaining obligation to      purchase the Company’s remaining U.K. subsidiaries remains in effect until      January 15, 2009. Pershing Square’s purchase obligation for the U.K.      subsidiaries is at a price of $65.0 (less any debt attributable to      those assets) and on customary terms to be negotiated. Proceeds of any      such purchase by Pershing Square are to be first applied to repay amounts      outstanding under the $42.5 term loan. The Company has retained the right,      in its sole discretion, to forego the sale of these assets or to require      Pershing Square to consummate the transaction. Pershing Square has no      right of first refusal or other preemptive right with respect to the sale      of these businesses by the Company to other parties. 3. The      issuance to Pershing Square of 14.7 million warrants to purchase the      Company’s common stock at $7.00 per share. The warrants will be      cash-settled in certain circumstances and have a term of 6.5      years.   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 13      Weeks Ended   |   |   | 39      Weeks Ended   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|-----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | November      1, 2008 |   |   | November      3, 2007 |   |   | November      1, 2008 |   |   | November      3, 2007 |   |
| Sales                                                                                                                 |   |                  | 100.0  | %      |                  |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |
| Other      revenue                                                                                                    |   |                  | 1.7    |   |                  |   | 1.0 |   |   |   | 1.2 |   |   |   | 0.9 |   |
|   Total      revenue                                                                                        |   |                  | 101.7  |   |                  |   | 101.0 |   |   |   | 101.2 |   |   |   | 100.9 |   |
| Cost      of merchandise sold (includes occupancy)                                                                                                                                                                                                                                                                                                                                                                                                    |   |                  | 80.2   |   |                  |   | 78.9 |   |   |   | 78.2 |   |   |   | 77.4 |   |
|   Gross      margin                                                                                         |   |                  | 21.5   |   |                  |   | 22.1 |   |   |   | 23.0 |   |   |   | 23.5 |   |
| Selling,      general and administrative expenses                                                                                                                                                                                                                                                                                                                                                                                                     |   |                  | 30.0   |   |                  |   | 28.7 |   |   |   | 28.7 |   |   |   | 28.2 |   |
| Pre-opening      expense                                                                                              |   |                  | -      |   |                  |   | 0.2 |   |   |   | 0.2 |   |   |   | 0.2 |   |
| Asset      impairments and other writedowns                                                                                                                                                                                                                                                                                                                                                                                                           |   |                  | 7.3    |   |                  |   | 0.2 |   |   |   | 2.3 |   |   |   | - |   |
|   Operating      loss                                                                                       |   |                  | (15.8  | )      |                  |   | (7.0 | ) |   |   | (8.2 | ) |   |   | (4.9 | ) |
| Interest      expense                                                                                                 |   |                  | 0.2    |   |                  |   | 1.6 |   |   |   | 0.3 |   |   |   | 1.4 |   |
|   Loss      before income      tax                                                                          |   |                  | (16.0  | )      |                  |   | (8.6 | ) |   |   | (8.5 | ) |   |   | (6.3 | ) |
| Income      taxes      (benefit)                                                                                      |   |                  | 9.2    |   |                  |   | (3.4 | ) |   |   | 1.4 |   |   |   | (2.5 | ) |
|   Loss      from continuing      operations                                                                 |   |                  | (25.2  | )%     |                  |   | (5.2 | )% |   |   | (9.9 | )% |   |   | (3.8 | )% |

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|                                                                                                                                                                                                                                                                                                                            |   | 13      Weeks Ended   |   |   | 39      Weeks Ended   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|-----------------------|--------|
| (dollar      amounts in millions)                                                                                                                                                                                                                                                                                               |   | November      1, 2008 |   |   | November      3, 2007 |   |   | November      1, 2008 |   |   | November      3, 2007 |   |
| Sales                                                                 |   | $                     | 560.3  |   |                  | $      | 615.8 |   |   | $ | 1,782.9 |   |   | $ | 1,889.4 |   |
| Other      revenue                                                    |   | $                     | 9.3    |   |                  | $      | 6.4 |   |   | $ | 22.0 |   |   | $ | 18.6 |   |
| Operating      loss                                                   |   | $                     | (80.3  | )      |                  | $      | (31.9 | ) |   | $ | (118.0 | ) |   | $ | (56.8 | ) |
| Operating      income (loss) as % of sales                                                                                                                                                                                                                                                                                      |   |                  | (14.3  | )%     |                  |   | (5.2 | )% |   |   | (6.6 | )% |   |   | (3.0 | )% |
| Store      openings                                                   |   |                  | 2      |   |                  |   | 4 |   |   |   | 11 |   |   |   | 12 |   |
| Store      closings                                                   |   |                  | 1      |   |                  |   | - |   |   |   | 1 |   |   |   | 1 |   |
| Store      count                                                      |   |                  | 519    |   |                  |   | 510 |   |   |   | 519 |   |   |   | 510 |   |

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|                                                                                                                                                                                                                                                                                                                                               |   | 13      Weeks Ended   |   |   | 39      Weeks Ended   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|-----------------------|--------|
| (dollar      amounts in millions)                                                                                                                                                                                                                                                                                                                  |   | November      1, 2008 |   |   | November      3, 2007 |   |   | November      1, 2008 |   |   | November      3, 2007 |   |
| Sales                                                                                    |   | $                     | 91.5   |   |                  | $      | 109.7 |   |   | $ | 284.4 |   |   | $ | 334.5 |   |
| Other      revenue                                                                       |   | $                     | 0.4    |   |                  | $      | 0.4 |   |   | $ | 1.4 |   |   | $ | 1.4 |   |
| Operating      loss                                                                      |   | $                     | (17.7  | )      |                  | $      | (20.5 | ) |   | $ | (39.0 | ) |   | $ | (46.9 | ) |
| Operating      loss as % of      sales                                                   |   |                  | (19.3  | )%     |                  |   | (18.7 | )% |   |   | (13.7 | )% |   |   | (14.0 | )% |
| Store      openings                                                                      |   |                  | 5      |   |                  |   | 1 |   |   |   | 5 |   |   |   | 1 |   |
| Store      closings                                                                      |   |                  | 6      |   |                  |   | 12 |   |   |   | 28 |   |   |   | 44 |   |
| Store      count                                                                         |   |                  | 467    |   |                  |   | 521 |   |   |   | 467 |   |   |   | 521 |   |

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|                                                                                                                                                                                                                                                                                                                                          |   | 13      Weeks Ended   |   |   | 39      Weeks Ended   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|-----------------------|--------|
| (dollar      amounts in millions)                                                                                                                                                                                                                                                                                                             |   | November      1, 2008 |   |   | November      3, 2007 |   |   | November      1, 2008 |   |   | November      3, 2007 |   |
| Sales                                                                               |   | $                     | 30.3   |   |                  | $      | 32.3 |   |   | $ | 93.5 |   |   | $ | 89.9 |   |
| Other      revenue                                                                  |   | $                     | 1.6    |   |                  | $      | 0.6 |   |   | $ | 3.5 |   |   | $ | 0.5 |   |
| Operating      income      (loss)                                                   |   | $                     | (1.8   | )      |                  | $      | 1.8 |   |   | $ | (1.8 | ) |   | $ | 0.7 |   |
| Operating      income (loss) as % of sales                                                                                                                                                                                                                                                                                                    |   |                  | (5.9   | )%     |                  |   | 5.6 | % |   |   | (1.9 | )% |   |   | 0.8 | % |

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|                                                                                                                                                                                                                      |   | 13      Weeks Ended   |   |   | 39      Weeks Ended   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|-----------------------|--------|
| (dollar      amounts in millions)                                                                                                                                                                                         |   | November      1, 2008 |   |   | November      3, 2007 |   |   | November      1, 2008 |   |   | November      3, 2007 |   |
| Operating      loss                                  |   | $                     | (8.4   | )      |                  | $      | (2.7 | ) |   | $ | (17.4 | ) |   | $ | (11.0 | ) |

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| 3.1    | (1)    | Restated      Articles of Incorporation of Borders Group, Inc.                                                                                                                       |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2    | (2)    | Amendment      to the Restated Articles of Incorporation of Borders Group,      Inc.                                                                                                 |
| 3.3    | (3)    | Restated      bylaws of Borders Group, Inc.                                                                                                                                          |
| 3.4    | (4)    | First      Amendment to the Restated By laws of Borders Group,Inc.                                                                                                                   |
| 3.5    | (2)    | Second      Amendment to the Restated By laws of Borders Group,Inc.                                                                                                                  |
| 3.6    | (5)    | Third      Amendment to the Restated By laws of Borders Group,Inc.                                                                                                                   |
| 3.7    | (6)    | Fourth      Amendment to the Restated By laws of Borders Group,Inc.                                                                                                                  |
| 10.50  | (7)    | Borders      Group, Inc. Indemnification Letter Agreement with Directors and      Officers                                                                                           |
| 10.51  |   | Third      Amendment to the Borders Group, Inc. 2004 Long Term Incentive Plan dated      December 9, 2008                                                                            |
|   |   |                                                                                                                                                                                 |
| 31.1   |   | Statement      of George L. Jones, President and Chief Executive Officer of Borders      Group, Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of      2002                  |
| 31.2   |   | Statement      of Edward W. Wilhelm, Executive Vice President and Chief Financial Officer      of Borders Group, Inc. pursuant to Section 302 of the Sarbanes-Oxley Act      of 2002 |
| 32.1   |   | Statement      of George L. Jones, President and Chief Executive Officer of Borders      Group, Inc. pursuant to Section 906 of the Sarbanes-Oxley Act of      2002                  |
| 32.2   |   | Statement      of Edward W. Wilhelm, Executive Vice President and Chief Financial Officer      of Borders Group, Inc. pursuant to Section 906 of the Sarbanes-Oxley Act      of 2002 |
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| (1     | )      | Incorporated      by reference from the Company’s Annual Report on Form 10-K dated January      24, 1999 (File No. 1-13740).                                                   |
| (2     | )      | Incorporated      by reference from the Company’s Current Report on Form 8-K dated May 25,      2007 (File No. 1-13740).                                                       |
| (3     | )      | Incorporated      by reference from the Company’s Annual Report on Form 10-K dated January      24, 2001 (File No. 1-13740).                                                   |
| (4     | )      | Incorporated      by reference from the Company’s Current Report on Form 8-K dated July 13,      2006 (File No. 1-13740).                                                      |
| (5     | )      | Incorporated      by reference from the Company’s Current Report on Form 8-K dated October      2, 2007 (File No. 1-13740).                                                    |
| (6     | )      | Incorporated      by reference from the Company’s Current Report on Form 8-K dated January      17, 2008 (File No. 1-13740).                                                   |
| (7     | )      | Incorporated      by reference from the Company’s Current Report on Form 8-K dated November      25, 2008 (File No. 1-13740).                                                  |
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