The Website of The Magazine of the Science Fiction & Fantasy Field

Locus Online
  
Sub Menu contents




Recent Posts

Archives

 




 

Send items, updates, or corrections for this page to locus@locusmag.com





Awards Calendar

2013 Winners


[* links to sfadb pages with nominee indexing and cover images]

2012 Winners





Categories

Tags



This blog is hosted by WordPress beginning April 2010, with re-initialized categories and tags. Labels listed below apply to the earlier, Blogger-hosted posts.

Labels for Earlier Posts

Borders Files for Chapter 11 Bankruptcy Protection

Borders has filed for Chapter 11 bankruptcy protection, listing a debt of $1.29 billion and assets of $1.275 billion, in U.S. Bankruptcy Court. They expect to “finalize and implement a store closure, store liquidation and lease modification plan” as approved by their board, closing about 30 percent of their 642 stores, or approximately 200 locations, over the next few weeks. Creditors, including book publishers and distributors, are owed about $230 million: Penguin is owed $41.1 million, Hachette Book Group $36.9 million, Simon & Schuster $33.75 million, Random House $33.5 million, and HarperCollins $25.8 million. Borders expects to pay vendors for merchandise shipped after today’s filing; existing debt will be settled with the approval of the bankruptcy court. This morning’s announcement follows an ordering freeze last night; Ingram is no longer shipping books.

The bookseller announced it had received a commitment for $505 million in Debtor-in-Possession (DIP) financing led by GE Capital which, according to the company, “should enable Borders to meet its obligations going forward.” Previous negotiations for an unsecured $550 loan with GE Capital fell through because the retailer wasn’t able to meet benchmarks including securing additional funding. Borders expects to maintain employee payroll and benefits, and to honor gift cards and the Borders Rewards program.

Borders Group President Mike Edwards said, “It has become increasingly clear that in light of the environment of curtailed customer spending… and the company’s lack of liquidity, Borders Group does not have the capital resources it needs to be a viable competitor.” The bookseller’s lackluster performance is seen as a result of factors including the decision in 2001 to transfer online business to Amazon, too much overseas expansion, an aggressive  buy back of stock, problems with long-term store leases, and a failure to compete with the Kindle and Nook for e-book and e-reader sales.

Ken Hiltz has been named senior vice president, restructuring of the company; advisory firms include Jefferies & Company for financial restructuring services; DJM Property Management for real estate advisory services; and AP services for interim restructuring and management services.

See Publishers Weekly, The Wall Street Journal, and Borders Reorganization for more.

Comments

Pingback from SOUTH DIVAS – Borders Files for Chapter 11 Bankruptcy Protection – Locus Online
Time Wed 16 February 2011 at 12:26 pm

[...] post: Borders Files for Chapter 11 Bankruptcy Protection – Locus Online └ Tags: and-more, april, bankruptcy, chapter, files, has-filed, img-alt, listed-below, [...]

Pingback from Borders files for bankruptcy, to close 200 stores – Reuters | Finance News
Time Wed 16 February 2011 at 12:30 pm

[...] loss may be others' gain in book warmsnbc.comKane County Chronicle -Denver Post -Locus Onlineall 1,608 news [...]

Pingback from Tweets that mention Locus Online News » Borders Files for Chapter 11 Bankruptcy Protection — Topsy.com
Time Wed 16 February 2011 at 12:34 pm

[...] This post was mentioned on Twitter by ash and mona and SteveNagy, Locus Magazine. Locus Magazine said: Borders Files for Chapter 11 Bankruptcy Protection http://tinyurl.com/4bsz3rt [...]

Pingback from Borders files for bankruptcy, to close 200 stores – Reuters | ArticleNox.com
Time Wed 16 February 2011 at 12:38 pm

[...] loss may be others' gain in book warmsnbc.comKane County Chronicle -MainStreet -Locus Onlineall 1,621 news [...]

Pingback from Borders files for bankruptcy, to close 200 stores – Reuters | Business Latest News Wall
Time Wed 16 February 2011 at 1:02 pm

[...] News Than BadThe StirBye-Bye Borders: What We'll MissMainStreetKane County Chronicle -Locus Online -Patch.comall 1,625 news [...]

Pingback from The Investing Tutor » Blog Archive » Borders files for bankruptcy, to close 200 stores – Reuters
Time Wed 16 February 2011 at 6:16 pm

[...] TribuneBorders to shutter 6 of 13 Colorado locationsDenver PostKane County Chronicle -Locus Online -Patch.comall 1,582 news [...]

Pingback from Worldshots › Mi tett be Bordersnek?
Time Thu 21 July 2011 at 9:48 am

[...] 2011 feburárjára a cégnek 1.29 milliárd dollárnyi tartozása keletkezett, és 1.275 milliárdnyi vagyonnal rendelkezett. 642 üzlete volt – ebből rövid idő alatt körülbelül kétszázat tervezett bezárni – és 230 millió dollárral tartozott a különböző könyvkiadóknak. (Pontos számok a Locus Online hírében.) [...]


© 2011-2014 by Locus Publications. All rights reserved. Powered by WordPress, modified from a theme design by Lorem Ipsum.