UPDATE: Borders Breaks Up With Amazon.com, Tries Its Own Thing

Naturally, I was right when I said, in my original post, "Now that they're forced to fend for their own, Borders will likely experience a severe downfall in their sales."

From the New York Times:

The Borders Group said its same-store sales fell and its losses narrowed in the first quarter, and Wall Street greeted Tuesday’s unveiling of the bookseller’s redesigned Web site with a sell-off of its shares.

Borders, the nation’s No. 2 retail bookseller behind Barnes & Noble, said it lost $31.7 million, or 53 cents a share, in the three months ending May 3, compared with a loss of $35.9 million, or 61 cents a share, for the comparable period of 2007. Thomson Financial said analysts had expected a loss of 47 cents a share.

It's only fair to say I used to work at Barnes & Noble (but I hated it).

Borders Reports a Loss, and Its Stock Falls 7% [The New York Times]