After disappointing fourth-quarter results, Borders Group Inc. presented a long-term strategic plan designed to revitalize and reinvent the company.

The plan focuses on reviving Borders’ domestic superstore business while reducing investments in segments that have not provided good returns, including its international stores and Waldenbooks Specialty Retail division. The company sees this year as a transforming and stabilizing period with anticipated earnings growth in 2008.

Borders has been working on a new concept for its bookstores; the first store with the new design is expected to open in early 2008. It also plans to create a new proprietary borders.com e-commerce site in early 2008.

Borders Group is looking into alternatives for the majority of its international segment. It also will continue to close underperforming Waldenbooks stores, shutting down an additional 250 underperforming stores over the next two years after 124 stores shut down last year.

A spokesperson for the company said competition from superstores and less traffic in its mall locations have led the company to close some of Waldenbooks stores. She could not say whether Iowa’s locations would be affected, but said about 300 Waldenbooks stores in the U.S. will remain open.

In the fourth-quarter period ended Feb. 3, Borders Group recorded a consolidated net loss of $73.6 million, or $1.25 per share, compared with a net income of $119.1 million, or $1.78 per share, in the same period a year earlier. For the entire fiscal year, the company lost $151.3 million compared with a net income of $101 million in fiscal 2005.