Borders which has posted a 57% drop in quarterly revenue plans to cut expenses by $120 million. At the same time it announces that it currently has a credit line of $194 million but the certainty of future credit lines is diminishing.

As Borders faces economic hurdles it also faces lawsuits from employees who claim they were not paid overtime and from cutomers who claim that Borders Gift Card policy, not allowing them to be redeemable for cash, violates California law.

To reduce cost it is reducing 20% of its Corporate Workforce or 274 workers. It is not like this was not a fairly lean company to begin with and so cost cutting is more difficult.

One mistake it made in its business planning is that it began a costly store redesign plan trying to compete against Wal-mart and Amazon as it felt it was losing market share. As a rule, business should never concern itself with market share but always concentrate on its own bottom line. Growth and Market share feed the monsters on Wall Street as that is what they look at, but for business planning, usually not smart.

Fast food places tend to all locate in the same strip areas because they know it is a shared customer base. Each company does the best it can knowing the customers will rotate. It is not about beating the competitions numbers, although their ads sometimes play that pretend game, but rather it is about beating their own numbers.

Course, when you see your numbers dropping and there doesn't seem to be a fucking thing you can do about it, it is beyond depressing. At a certain point you are going to grab at straws and blame everyone and run the risk of making bad decisions. That is human nature and life.