Report: Borders close to financing deal
The headlines for the Michigan-based Borders Group Inc. have not been good lately:
- Stopped Shipments a Death Knell for Borders?
- Borders' books shows more red ink
- Borders Is Bankruptcy-Bound, Poll Says
And my personal favorite speculative headline:
It seems everyone has been on a death watch for the bookseller.
Today, Julie Bosman writes in the New York Times Borders may be close to a financing deal that might help the company reorganize. From the article:
Borders executives told publishers that they were close to securing refinancing from GE Capital and other lenders, these people said, speaking only on condition of anonymity, and that the company intended to reduce costs, improve liquidity and expand marketing efforts, as well as sell some assets.
Earlier this month, we posted on a Reuters report that said Borders was working with publishers to work out a deal. Borders is in debt to the publishers for past shipments and the company reportedly wants to restructure that debt as a loan.
Meanwhile, the company is cutting costs. The Detroit News reported yesterday that Borders is closing a big distribution center in Tennessee:
Borders will consolidate the processing and delivery of books, movies, music and other products to two distribution centers in Carlisle, Pa., and Mira Loma, Calif. It is part of a long-term effort to cut costs and make the distribution of products to bookstores more efficient, Borders Group said in a statement.
So will borders survive? What would your future headline say?