Posted on 02/02/2011 10:33:24 PM PST by TheDingoAteMyBaby
WILMINGTON, Delaware (Reuters) - Borders Group Inc, the second-largest U.S. book chain, may file for bankruptcy later this month, a source familiar with matter said.
The struggling chain, which operates, 500 stores, will likely close at least 150 stores, according to a separate report by Bloomberg News.
Several private equity investors are considering whether to provide a junior loan to the company, according to the report.
Bloomberg cited unidentified sources for its story.
Borders said on Sunday it would seek to preserve cash by delaying its January payments to vendors and landlords as it tries to complete a debt restructuring.
Borders last week secured a $550 million credit facility from GE Capital, a unit of General Electric Co, under several conditions, including that it close stores and arrange financings with other lenders, vendors and landlords.
It also warned it might have to file for Chapter 11 bankruptcy if it failed to meet those conditions.
Analysts have faulted Borders for being ill equipped to adapt to bookbuyers' migration to digital formats and for having too many stores in an age when many shoppers prefer to buy even paper books on line from retailers like Amazon.com Inc
The chain operates 500 namesake superstores in addition to the smaller Waldenbooks chain. About three-quarter of its superstore leases expire in 2017 and beyond, according to a regulatory filing.
Borders is late comer to the ebooks market, a rare source of growth in the publishing world, launching its ebook store eight months after its larger rival, Barnes & Noble Inc, and nearly three years after Amazon.com.
Sales at stores open at least a year have plunged in recent years, with overall company sales down 37.3 percent in the last three years.
Borders did not immediately return several calls for comment.
Its shares fell 35.6 pct to 47 cents in regular trading on the New York Stock Exchange on Tuesday.
After hours, shares fell further to 38 cents. They hit an all time low of 35 cents in December 2008.
I love physical books, but I can’t say I didn’t see this coming.
Bummer. They fill my bookshelves with 33% off
coupons plus another 10% with paid membership.
I have their low end Kobo reader. Best with epub,
but usable with pdf. Lighter than paper books.
This makes me sad and frustrated. I love books, I love bookstores, I love NEW books, and I love Borders, where there’s a convenient place to spend more money than I should on books and music and magazines I didn’t even know existed. Don’t die, Borders!
Border’s, like B. Dalton, prices are ridiculous compared to Amazon for physical books.
Compete or die.
The continuing death of Western civilization as we go back into the Dark Ages.
When they turn the power off, the “digital books” will be gone too.
Shhh! You're not supposed to mention that.
I see a big book sale in our futures!
Good.
I haven’t shopped at Borders since they refused to carry a magazine that published the Mohammed cartoons.
Glad to see them go belly up.
I love Amazon, but I always check Half.com first. I get new items at rock-bottom prices all the time.
What is that stock symbol?
There’s that recovery again... the economy is so strong it can even support a major book retailer like Borders! /s
Amazon does not have the overhead that Borders has. Amazon doesn't charge sales tax for most of its customers. I have a Borders less than 8 miles away, but I haven't been there in over a year. I think the age of brick and mortar is fading away, unless the government kills online commerce, which it well might.
There is one about 5 mins from me that I visit once in a while.
Didn’t I read not to long ago they were looking to Buy Barnes & Noble chain?
Books-A-Mill donates heavily to conservative causes. I buy most of my books from them.
I think it was the other way around.
This is why I thought I remebered it!
BGP
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