Borders to Sell Build-A-Bear Items as Readers Switch to E-Books

Borders Group Inc. (NYSE: BGP), the second- largest U.S. bookstore chain, will start selling items from Build-A-Bear Workshop Inc. (NYSE: BBW), relying less on books for sales as more people use electronic reading devices.

Most of Borders’ more than 500 stores will create sections next month dedicated to Build-a-Bear, the maker of kits kids can use to craft stuffed animals, Chief Executive Officer Michael Edwards said in an interview. The new areas also will feature books and DVDs tied to the brand.

Borders has lost money for the past four years as customers read more on digital readers and buy books over the Web, forcing the chain to close and sell stores. The bookseller has made its own push into digital readers, escalating competition with Amazon.com Inc. (NASDAQ: AMZN) in an industry whose sales doubled last year.

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