On the same day it announced that sales during the holiday period had fallen 11.7% (see following story), Borders replaced several top executives, including president and CEO George Jones and CFO Ed Wilhelm.

Effective immediately, the new president and CEO of Borders is Ron Marshall, most recently principal of Wildridge Capital Management, a private equity firm he founded three years ago. Before that he was CEO for a food distribution and retail company as well as executive v-p and CFO of Pathmark Stores and earlier held senior management positions at Crown Books--the defunct bookselling subsidiary of Dart Group--and Barnes & Noble College bookstores.

Jones joined Borders in July 2006 and initiated major changes in the company, including selling much of its international operations, developing new concept stores, selling online without the help of Amazon, cutting expenses, trimming poorly performing stores and more. At first blush, it seems that the shift won't be so much one of strategy but how quickly that strategy is applied.

In a statement, board chairman Larry Pollock said, "Progress has been made by Borders Group over recent quarters within the challenging economy to reduce debt, improve cash flow, cut expenses, enhance inventory productivity and improve margins, but it is imperative that the company more aggressively attack these initiatives to address its long-term future. We are confident that Ron Marshall, with his strong financial and turnaround expertise, vast retail experience and specific bookstore background, is the right choice to lead a new management team and boldly take these efforts to the next level."

For his part, Marshall called Borders "a powerful brand with millions of loyal customers who love to shop in the stores. These are tremendous assets that can be built upon once the balance sheet is strengthened and the company is on more solid financial footing. I've led turnarounds at other retail organizations and look forward to leading a new management team at Borders to drive profitability and help ensure lasting success for this great name in retail."

Wall Street appeared to approve of the changes: on a day the Dow Jones Industrial fell almost 1%, Borders stock rose 29% and closed at 58 cents a share on three times the usual volume.

Marshall was busy yesterday calling publishers "to reassure them of the retailer's viability," according to the Wall Street Journal. Several publishers expressed concern about the bookseller but said it is current on its bills.

Mark Suchomel, president of Independent Publishers Group, told the paper, "They've got issues to address, including getting books onto the shelves faster and more efficiently."

And David Young, CEO of Hachette Book Group, said that Marshall told him "he is absolutely hell-bent on insuring that Borders is the first choice for the serious book buyer."

(By the way, kudos to Forbes.com for its headline: "Marshall Plan for Troubled Borders.")

Other Changes

Replacing Wilhelm as CFO is Mark Bierley, who joined Borders in 1996 and was most recently senior v-p, finance. Wilhelm joined Borders in 1994 and had been CFO for the last eight years.

Anne Kubek has been appointed executive v-p, merchandising and marketing, replacing Rob Gruen, who joined Borders two years ago and had earlier worked with Jones. Kubek has worked for Borders since 1990, when she was an assistant manager at the Rockville, Md., Borders. She moved to the corporate office in 1996 and was most recently senior v-p, Borders Stores.

Dan Smith has been named to the new position of chief administrative officer. He has worked at Borders since 1995 and remains executive v-p, human resources, and will be responsible for the information technology group, too.

Sales at Borders during the nine weeks ended January 3 fell 11.7% to $868.8 million compared to the same period last year. At Borders superstores, total sales dropped 13.6% to $652.6 million, and sales at superstores open at least a year fell 14.4%. Comp-store book sales fell 11%. Borders.com sales were $20.3 million.

At Waldenbooks Specialty Retail, total sales fell 16.4% to $161.7 million and comp-store sales dropped 8%.

International sales dropped just 1.4% to $34.3 million, and comp-store sales at Paperchase in the U.K. dropped 6.5%.

The company noted that holiday sales "started slow and improved during the latter part of the season."

In a statement, new CFO Mark Bierley commented: "While our recent holiday sales results reflected the difficult retail environment and additional challenges within specific categories of our business, the company's sales performance and cash generation were within the range of our internal financial plans for the holiday period. We continue to aggressively implement the range of initiatives that we launched in mid-2008, which have allowed us to reduce expenses and improve working capital to drive improved cash flow and debt reduction."

---

In related news, because of its low share price and low market capitalization, Borders is under review by the New York Stock Exchange for delisting, the company said.

As Borders announced its management shakeup to address its difficult financial situation, a Goldman Sachs analyst upgraded Barnes & Noble stock, saying that "ongoing challenges" at Borders could benefit B&N, according to the AP. Matthew J. Fassler upgraded B&N to "neutral" from "sell." He also indicated that the increased interest in B&N by investors--particularly Yucaipa's recent purchases, leading to an 8% stake in B&N, mentioned here yesterday--"reinforces the notion of value." The comments were credited with a 13.5% jump in B&N stock, which closed at $17.38 yesterday.

---

Cool idea of the day: For Cleveland-area residents who can't make it to Washington for the inauguration, Joseph-Beth Booksellers, Lyndhurst, Ohio, plans to host "An Inaugural Ball at the Bookstore" on January 20.

According to the Sun News, "The event will include champagne, hors d'oeuvres, music and raffles. All attendees will receive a commemorative book, Change We Can Believe In, by Obama. Ticket are $40 per person or $70 per couple. Jackets and ties are required for men and gowns for ladies."

---

At Bookland bookshop, New Kingston, Jamaica, "one amiable shop assistant disclosed that the single greatest seller were books on Barack Obama, president-elect of the United States," according to the Gleaner, which explored the newly expanded store.
 
---

Scribner will publish a memoir by soon-to-be-former First Lady Laura Bush. According the Associated Press (via USA Today), the book, which is scheduled for release in 2010, "will encompass her recollections of personal and historical moments, including her eight years in the White House."

---

Peering into the crystal book ball, the Guardian foresaw "what not to miss in 2009," while the Times predicted "the hottest reads of 2009."

---

Quick, name a Canadian author. If you thought immediately of Margaret Atwood, Leonard Cohen, Robertson Davies, Alice Munro, Michael Ondaatje, Mordecai Richler or Carol Shields--or any combination thereof--go to the head of the class. Or go to Canada. The National Post reported that in a recent survey of Canadians 15 and older, "just 53% of respondents were able to name a Canadian author. Just one-third of respondents said they feel very familiar or somewhat familiar with Canadian authors."

---

The Washington Post profiled Hooks Book Events, founded by Perry Pidgeon Hooks and Loretta Yenson, a year-old company that hosts author and book events with a range of capital area agencies, associations, companies and other organizations. One example: "when economist Robert J. Shiller came to town last fall to discuss his book The Subprime Solution, Perry and Loretta took him to Fannie Mae, al-Jazeera, a financial analysts association, a wealth management firm and the International Monetary Fund."

Hooks Book Events held almost 100 events last year and grossed "about $100,000 in the first nine months of the year," the paper said. Perry is a former employee of Politics and Prose bookstore.

---

Also in the Washington Post, Michael Dirda wrote, "Much of the most original fantasy, mystery and horror is now published by small specialty presses." He then offered an annotated listing of 11 of them, which included highlights and some of their most notable titles.

Michael Walsh, head of one of those presses, Old Earth Books, wrote to Shelf Awareness that "the downside is that many of the small presses do not offer discounts the stores want. Some of the books have small print runs. But some such as Old Earth Books offer trade discounts, are available from Ingram, etc., and are not stocked by Borders or B&N (not that I won't sell to them, they're not interested).

"It strikes me that one way for indie stores to make themselves different from the Big B Bookstores is to stock books the Big B's don't stock."

---

And last but not least, in a story about the future First Family leaving Chicago, the Washington Post mentioned another of President-elect Obama's favorite bookstores--next to the Seminary Co-op, which we noted in yesterday's issue. Speaking of the Obamas, Laura Prail, manager of 57th Street Books, which is part of the cooperative that runs the Seminary Co-op, told the Post, "They're a great book family." She added, "I'm a little jealous of Politics and Prose."

---

Effective immediately, Gibson Square, the London, England, publishing company founded in 2001 by Martin Rynja, is being distributed in the U.S. by National Book Network. Gibson Square is launching its first list of seven titles in the U.S. this fall; 12-15 books are planned for 2010. The company specializes in "intelligent books" by authors with unusual perspectives that will provoke or contribute to a debate.

Among titles to be published by Gibson Square: Globalization by Sir Richard Branson, The Art of Always Being Right: 38 Ways to Win an Argument by Arthur Schopenhauer, A Dictionary of Idiocy by Stephen Bayley, The Pursuit of Laughter by Diana Mitford and The Great Wine Swindle by Malcolm Gluck.

Gibson Square was the original publisher of Blowing Up Russia by Yuri Felshtinsky, which contained the allegations of former spy Alexander Litvinenko against his former spymasters in Moscow, allegations that led to his murder in London in 2006.

Karen Spengler, owner of I Love a Mystery Bookstore, Mission, Kan., died on New Year's Day, the Kansas City Star reported. She was 56 and had had breast cancer for 12 years.

A CPA who worked for Arthur Anderson and founded her own CPA business, Spengler opened her bookstore in 2000, realizing a longtime dream. As the paper noted, "In 2007, I Love A Mystery earned the coveted 25 Under 25 award from the Kansas City Small Business Journal, and over the years, Karen's store has hosted countless book signings, book club sessions and other events for her loyal customers."

The Independent Mystery Booksellers Association called Spengler "an unflagging advocate for independent booksellers, an active participant in the Independent Mystery Booksellers Association, and a spirited and gracious friend to all who had the pleasure of knowing her."

IMBA has a form where people may share thoughts and memories of Spengler and has information about making donations in her memory to Susan G. Komen's Race for the Cure and for sending tribute cards.

This morning on the Early Show and FOX-TV's Mike Juliet Show: Victoria Osteen, author of Unexpected Treasures, illustrated by Diane Palmisciano (Little Simon Inspirations, $16.99, 9781416955504/141695550X) and of My Happy Heart Books, illustrated by Betsy Day (Little Simon Inspirations, $19.99, 9781416955498/1416955496). She also appears tomorrow on Fox & Friends.

---

Tomorrow morning on the Today Show: Mark Bittman, author of Food Matters: A Guide to Conscious Eating with More Than 75 Recipes (Simon & Schuster, $25, 9781416575641/1416575642).

Also on Today: Ian K. Smith, author of The 4 Day Diet (St. Martin's, $24.95, 9780312373580/0312373589).

---

Tomorrow on the View: Greg Behrendt, co-author of He's Just Not That Into You: The No-Excuses Truth to Understanding Guys (Simon Spotlight Entertainment, $14.99, 9781416909774/141690977X).

---

Tomorrow on NPR's Fresh Air: Philippe Sands, author of Torture Team: Rumsfeld's Memo and the Betrayal of American Values (Palgrave Macmillan, $26.95, 9780230603905/0230603904).

Diana Athill, whose Somewhere Towards the End took the 2008 Costa prize for biography, was one of five category winners who will now compete for the overall book of the year award, according to BBC News. The other winners, all of whom receive £5,000 (US$7,347) include The Secret Scripture by Sebastian Barry for best novel; Just Henry by Michelle Magorian for best children's book; The Outcast by Sadie Jones for best first novel; and The Broken Word by Adam Foulds for best poetry collection. The overall winner will announced January 27. Costa assumed sponsorship of the prize, which was established in 1971 by Whitbread, in 2006.

In October at a nice lunch at Café Paloma, Shelf Awareness's local Seattle haunt, G. Xavier Robillard talked--between bites of a Hungry Artist Roll-Up (not kidding)--about the rigorous training he underwent researching his new novel, Captain Freedom (Harper, $13.99 original trade paper, 9780061650680/0061650684, February 2009), a satirical look at the life of a fame-hungry caped crusader.

Captain Freedom started as a skit Robillard created for Live Wire! Radio. Fittingly the idea grew to epic proportions, and he knew there was a book to be written from it. After a frenzy of writing over six months, he sent the manuscript to a few agents. What followed was a familiar story for many first-time novelists: a series of polite but firm rejection letters. He started taking the revision process seriously and eventually the book found its way to literary agent Helen Zimmerman. She knew she had a funny manuscript on her hands and worked together with Robillard on editing it over the next year.

Eventually Zimmerman felt that she needed a second opinion--a guy's opinion. So she sent the manuscript to Carl Lennertz, v-p of independent retailing at Harper, author and occasional editor. He had excellent news: the book had found both a publishing house and an editor, and Lennertz had found his first Harper acquisition.

He also sent back the manuscript with the first 150 pages covered in notes. Robillard said that the editing process was very collaborative, helped by Lennertz's great sense of humor. Structurally the novel hasn't changed much, but Lennertz did extensive editing, spicing up the manuscript with more pop culture references and helping with comic timing. In fact, Robillard and Lennertz spent a weekend last January together giving the book a good once-over. (Imagine a superhero training montage here, with music chosen by Lennertz.)

From his day job as blogger for two Comedy Central websites--Indecision 2008, which covered the 2008 political race, and Inside, covering comedians--Robillard is immersed in current culture and the art of comedic delivery. And in his free time, he leaps tall mountains in a single bound--he has some pretty intense stories about mountain climbing.

Asked how Lennertz's background in sales and marketing seemed to influence his role as an editor, Robillard responded that Lennertz kept his editing hat firmly on while they worked together. Having written himself, Lennertz just wanted to make the book as entertaining as possible, Robillard continued. However, now that the book has gone to the printer, Lennertz has put his sales and marketing hat back on. As part of the effort to promote the book, at the fall Northern California Independent Booksellers Association meeting, Robillard gave a funny speech about his "research" for the book and his own desire to live the superhero lifestyle. And the week he spoke with Shelf Awareness, he was visiting many independent booksellers in the Pacific Northwest, meetings arranged primarily through Lennertz's connections. It's difficult for first-time novelists to get the attention they deserve, but with Lennertz's deep understanding of the indie market and Robillard's pithy writing, the book will certainly find a super welcome at bookstores.--Melissa Mueller

The House of Wittgenstein is as beautiful and well-appointed as the fabled primary Viennese residence of the Wittgenstein family; Alexander Waugh's 69 chapters are dazzlingly written, and each one draws readers deeper into the labyrinthine corridors of this fascinating, tragic family saga.

Karl Wittgenstein (1847-1912) rose to great wealth and power as an Austrian steel magnate from distinctly humble origins. He and his wife, Leopoldine, had nine children--one daughter died in childhood and three sons committed suicide. As Waugh notes of the imposing patriarch, "Like many great men of commerce he had a shallow understanding of the psychologies at work in his family and was able to appreciate his sons only by measuring their achievements by his own."

By that impossible standard, all the offspring would be found wanting: no matter that Paul, the second youngest child, became a world-renowned one-handed pianist after he lost his right arm in World War I, and Ludwig, the youngest, wrote Tractatus Logico-Philosophicus, one of the greatest and most confounding philosophical treatises of the 20th century.

Waugh tellingly contrasts the public face of fame and achievement with private torment for Ludwig and Paul. Ludwig, consumed by extreme narcissism and self-loathing, was celebrated as a genius and an intellectual giant in England yet regarded as a clown by his poisonously critical siblings. Paul in concert was warm, commanding and adored by audiences but tyrannical, impatient and fanatically secretive within the family. The surviving daughters suffered less dramatically from the family paradox, but nobody in residence at the Palais Wittgenstein was ever at ease with themselves or anybody else.  

Despite sibling warfare and their distaste for each other, the Wittgensteins were alone in the world with each other--until the rise of Hitler and the Anschluss of 1938. The Wittgensteins had never considered themselves Jewish, but the Third Reich held another opinion--the 1935 Nuremberg Laws declared anybody with three grandparents with Jewish blood to be Jews.

If Waugh is brilliant at portraying the paralyzing legacy Karl and Leopoldine trained into their unfortunate children, he is stupendous in narrating the desperate efforts the Wittgensteins made to establish themselves as "Mischling" (as opposed to "Volljuden" [fully Jewish] in the eyes of the Third Reich) so that two of the sisters could continue to reside in Vienna without Nazi reprisals. To their last breaths, Waugh shows, the Wittgensteins remained "special" though immeasurably sad.--John McFarland

Shelf Talker: Those who revel in tales of family dysfunction will be unable to stop reading The House of Wittgenstein to eat, drink or check e-mails; others will simply be unable to believe their luck not to born a Wittgenstein.