Vector Group's LeBow To Invest $25 Million In BGP

The struggling bookseller Borders Group Inc BGP has been joined by a Vector Group Ltd VGR controlled entity in the former’s efforts to boost capital levels. VGR’s Chairman Bennett LeBow has agreed to invest $25 million in BGP. 11.1 million BGP shares will be bought at $2.25 each, a 0.9% premium to Thursday's closing price. LeBow will become BGP’s chairman and the board will also be joined by Howard Lorber, president and chief executive of tobacco company VGR. The investment's terms call for a nine-person board and, therefore, Richard McGuire has resigned as its chairman. Borders is dealing with an ongoing sales decline and the company had announced $790 million in new financing in March. It is seeing the investment from LeBow as a way to boost its digital efforts and improve brick-and-mortar results. The company’s fiscal Q4 profits doubled on smaller write-downs, while revenue dropped 13%. BGP slipped 3.1% to $2.16 in the pre-market session. Read more from Benzinga's Company news.