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Borders filing for bankruptcy

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  1. WarpedWorld WarpedWorld is offline

    MD
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    Feb 16th, 2011 (2/16/2011 5:32pm)

    NEW YORK (By Phil Wahba) - Borders Group Inc, the second-largest U.S. bookstore chain, filed for bankruptcy protection, after years of sharp sales declines that made it impossible to manage its crushing debt load, and it plans to close nearly one-third of its stores.
    Its inability to garner significant online business and its near absence from the growing digital books market have made it difficult for Borders to compete with larger rival Barnes & Noble Inc and online retailer Amazon.com Inc.
    Borders had liabilities of $1.29 billion and assets of $1.28 billion as of December 25, 2010, according to documents filed on Wednesday with U.S. Bankruptcy Court in Manhattan.
    Borders Group President Mike Edward said in a statement that the chain "does not have the capital resources it needs to be a viable competitor."
    Borders said in January it might have to file for bankruptcy if it could not meet certain conditions for securing a $550 million credit facility from GE Capital, a unit of General Electric Co (GE.N: Quote, Profile, Research, Stock Buzz).
    It failed to meet those conditions, which included arranging financings with other lenders, vendors and landlords.
    In bankruptcy, GE Capital will provide Borders with $505 million in debtor-in-possession financing to allow it to continue operating, contingent on court approval.

    Borders, whose second largest shareholder William Ackman has said it was his worst investment ever, had been preserving its cash by delaying payments to suppliers, such as publishers and landlords.
    Sales at Borders declined by double-digit percentage rates in 2008, 2009 and in each quarter in 2010 it has reported.
    Borders, which has 6,100 full time staff, operates 508 namesake superstores as well as a chain of smaller Waldenbooks stores.
    The company said it would close about 30 percent of its stores in the next several weeks and plans to continue to pay its employees.
    Borders' largest unsecured creditors include major publishers that provide the books it sells. Borders owes Pearson PLC's Penguin $41.2 million, Hachette Book Group USA $36.9 million, and CBS's Simon & Schuster $33.8 million, according to court documents.
    The case is In re: Borders Group Inc, U.S. Bankruptcy Court, Southern District of New York, No: 11-10614.
    (Reporting by Phil Wahba; additional reporting by Santosh Nadgir; Editing by Derek Caney)
    Copyright 2010 Thomson Reuters.

    http://www.huffingtonpost.com/2011/0..._n_823889.html

    Be sure to check the list of store closures. Store closures = massive clearance sales..
    Edited By: WarpedWorld Feb 16th, 2011 at 05:33 PM
  2. Pker4Dummies Pker4Dummies is online now

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    Feb 16th, 2011 (2/16/2011 5:36pm) in reply to WarpedWorld

    Phew.

    I thought we were just going to give up and let all the Mexicans in.

    Thank God its only about dumb books.
  3. Z-Fresh Z-Fresh is online now

    Encinitas, CA
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    Feb 16th, 2011 (2/16/2011 6:08pm) in reply to Pker4Dummies

    This has been known for a while and Barnes and Nobles are about to do the same thing.
  4. repo_man456 repo_man456 is offline

    Chicago, IL
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    Feb 16th, 2011 (2/16/2011 7:35pm) in reply to Z-Fresh

    [hijack]

    Any other bankruptcy or mortgage litigation attorneys in Vegas this weekend for MG's thing?

    PMme

    [/hijack]
     
  5. Superleggera Superleggera is offline

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    Feb 16th, 2011 (2/16/2011 8:07pm) in reply to repo_man456

    I guess I have a role in this... just bought 3 books from half.com for a combined $9.77, including shipping. Really sucks though for Borders.
    Edited By: Superleggera Feb 16th, 2011 at 08:08 PM
  6. threeven threeven is offline

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    Feb 16th, 2011 (2/16/2011 9:32pm) in reply to Z-Fresh

     
    Originally Posted by Z-Fresh View Post

    This has been known for a while and Barnes and Nobles are about to do the same thing.

    source? Everything I've been reading seems to indicate BN is fine at least for a while
    2
  7. budo09 budo09 is offline

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    Feb 16th, 2011 (2/16/2011 9:36pm) in reply to threeven

     
    Originally Posted by threeven View Post

    source? Everything I've been reading seems to indicate BN is fine at least for a while

    anddddd Borders closing stores will help BN
  8. NotHilarious NotHilarious is offline

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    Feb 16th, 2011 (2/16/2011 9:36pm) in reply to budo09

    Guess this means we can disregard all their recommendations in the finance section.
  9. Sawb0 Sawb0 is offline

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    Feb 16th, 2011 (2/16/2011 9:40pm) in reply to NotHilarious

    Went to Borders the other day, bought 6 2011 calenders for $1 a piece lol
  10. MyJobisYou MyJobisYou is offline Banned Scammer

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    Feb 16th, 2011 (2/16/2011 9:47pm) in reply to Sawb0

    And who the fuck needs 6 calenders?
  11. Sawb0 Sawb0 is offline

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    Feb 16th, 2011 (2/16/2011 9:57pm) in reply to NotHilarious

    Oh I have friends that need calenders, stop being selfish.
  12. ginwilly ginwilly is offline

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    Feb 16th, 2011 (2/16/2011 9:59pm) in reply to Pker4Dummies

     
    Originally Posted by Pker4Dummies View Post

    Phew.

    I thought we were just going to give up and let all the Mexicans in.

    Thank God its only about dumb books.

    oman, I didn't get this for a sec. wp man wp
  13. Willywoo Willywoo is offline

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    Feb 16th, 2011 (2/16/2011 10:00pm) in reply to ginwilly

    What happens to my Borders Rewards points?
  14. Z-Fresh Z-Fresh is online now

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    Feb 16th, 2011 (2/16/2011 10:01pm) in reply to threeven

     
    Originally Posted by threeven View Post

    source? Everything I've been reading seems to indicate BN is fine at least for a while

    I'm a vendor of theirs so I have some insight but here is some public news about them.

    http://www.guardian.co.uk/books/2010...noble-for-sale
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