From the press release:
Borders Group, Inc. (NYSE: BGP) today announced that an entity controlled by Bennett S. LeBow has agreed to invest $25 million in the company through a private purchase of 11.1 million shares of the company's common stock at a purchase price of $2.25 per share and on other terms described below. The investment -- coupled with the company's recently announced financing -- will strengthen Borders' balance sheet and provide capital to help fund the transformation of the Borders brand. Mr. LeBow's investment will support several important financial and strategic initiatives such as improving the company's capital position, addressing the store network to maximize productivity and profitability, maximizing the digital opportunity including growing Borders.com, and developing strategic business partnerships. The purchase is expected to close later today.
In connection with the investment, Mr. LeBow has joined the Board of Directors and has also been elected Chairman. Mr. LeBow is the Chairman of Vector Group, Ltd. (NYSE: VGR). Howard Lorber, who serves as President and Chief Executive Officer of Vector Group, has also joined the Board of Directors of Borders Group.
Additionally, in order to create the nine-member Board as required by the terms of the transaction, Richard "Mick" McGuire has resigned from the Board of Directors.