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Borders may go bankrupt next week

submitted on February 1, 2011 by onkarkulkarni in "Stores / Merchants"
We all knew it was coming some day and now it could be as early as next week. Make sure you have redeemed your gift cards!
Borders Group Inc., the second- largest U.S. bookstore chain, may file for protection from creditors as soon as next week, according to three people familiar with the matter.

The retailer will likely close at least 150 stores, one person said. The people declined to be identified because the proceedings aren’t public.

Read more about it here:

  • 101520
    Posted by YanBz on February 1, 2011
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    Thanks for the heads up. I might have a card or two!
  • 101521
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    Posted by CouponNut on February 1, 2011
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    WOW, competition must be getting tough for Borders. Just when I just bought the Nextbook which features Borders as the web browser. Cry
  • 101531
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    Posted by midget on February 1, 2011
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    It was all the coupons that were posted on buxr that did them in Amused
    • onkarkulkarni
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      Posted by onkarkulkarni on February 1, 2011 [reply] 0 0
      I would agree.
  • 101537
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    Posted by anand on February 1, 2011
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    In March 2008, Borders announced the intention to sell the chain because of financial difficulties.Borders borrowed $42.5 million from Pershing Square Capital Management to keep the company with very high interest rate of 12.5%.The shares continued to drop throughout the year, and as of December 11, 2009 Borders stocks were trading at $1.30 on the NYSE, which is up almost a point from a low of $0.530 on January 28, 2009.
  • 101569
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    Posted by psplove on February 2, 2011 [reply] 0 0
    Wow, That's very big news. Borders Group operated 511 superstores under the Borders name, including 508 in the United States and 3 in Puerto Rico. It also operated 175 mall-based and other small format bookstores, including stores operated under the Waldenbooks, Borders Express, and Borders Outlet names, as well as operated 29 Borders-branded airport stores.
  • 101822
    Posted by HouTex on February 2, 2011
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    More information is known today about Borders' plan to restructure their operations. They are in talks with GE Capital to get $550 million in "debtor-in-posession" financing to keep it afloat during their reorganization. They've failed in their previous out-of-court attempts to persuade publishers to forgive unpaid bills in exchange for debt the company would repay later. They plan to close stores in order to reorganize and emerge from bankruptcy.

    Borders' almost $800 million in losses since 2006, its loss of market share to industry competition, and its slow incorporation of digital reading are all acceptable reasons behind the company's massive problems.

    Borders released a press release regarding its delayed payments to vendors, stating, "Borders Group, Inc. today reported that it will delay payments to certain parties — vendors, landlords and others — scheduled for the end of January. The delay is intended to help the company maintain liquidity while it seeks to complete a refinancing or restructuring of its existing credit facilities and other obligations."

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