According to Bloomberg News, The Borders Group announced that it will re-examine its relationship with Amazon.com, Border's online sales partner for the last five years.  Amazon handles inventory, customer service and order fulfillment for Borders and Borders gets a cut of the proceeds.

Borders will release a detailed plan in February or March, indicating how it will strive to differentiate itself from major competitor Barnes & Noble by focusing on unnamed key categories and how the Internet will play a larger role in its future, among other goals. The status of their relationship with Amazon will most likely be revealed at that time.

This announcement followed the release of the company's third quarter financials last week. Border's total sales were up 1.7% to $851.6 million over the same period last year, but net losses increased to a whopping $39.1 million vs. $14.1 million in 2005.  The losses were attributed to extensive store redesigns and the company's customer rewards program.