Headlines

Borders Files for Bankruptcy

Will move to close some stores immediately

Published

13 years ago

February 17, 2011

VMSD Staff

Borders Group Inc. (Ann Arbor, Mich.) has filed for bankruptcy in New York. The second- biggest U.S. bookstore chain says it plans to keep operating and restructure with $505 million in so-called debtor-in-possession financing from lenders led by GE Capital, according to a statement.

The 40-year-old chain listed debt of $1.29 billion and assets of $1.28 billion as of Dec. 25 in its Chapter 11 petition.

The reorganization will include the immediate closing of 200 of its 642 stores. Another 75 stores may need to close if concessions aren’t won from landlords, the company said.

“Closing the stores right away is essential because the Debtors are losing approximately $2 million per week at the closing stores,” lawyers for Borders wrote in court pleadings.

The company operates 642 stores under the Borders, Waldenbooks, Borders Express and Borders Outlet names in the U.S. and Puerto Rico.

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