The end of Borders
Borders Book Group Inc. can't pay its bills.
Several reports say the company is expected to file for bankruptcy sometime this week. From Reuters:
Bookseller Borders Group Inc is reviewing bids from liquidators to close hundreds of stores as it works out the final details of its impending bankruptcy filing, according to people close to the talks. The review is part of its plan to close about 200 of its 650 stores, which are a mix of Borders superstores and smaller Waldenbooks shops, these people said. The store closings will remove weak stores that have bled the retail chain's cash in recent years and provide immediate funds from the sale of inventory.
A Border's spokesman is quoted in the report saying, "Borders will not comment or speculate upon Borders' future course. If and when the company has something to disclose, it will do so."
President's Obama's Budget proposal and Michigan
President Obama released his budget proposal to Congress yesterday saying "Even as we cut out things that we can afford to do without, we have a responsibility to invest in those areas that will have the biggest impact in our future."
The Detroit Free Press says the President's budget is a "mixed bag" for Michigan. On the up side, the budget continues to invest in advanced vehicle technology research, it asks that a $7,500 rebate be put in place to encourage electric vehicle purchases (instead of a tax credit), and it would help the state avoid a big payment it owes the federal government for borrowing money to cover unemployment benefits.
And the down side? From the Freep:
...it cuts in half a program to help poor people pay energy bills, cuts community block grants and Great Lakes restoration funding and ends plans to build an amphibious Marine Corps vehicle that could have created hundreds of Michigan jobs.
A big day for Flint
The city of Flint will likely find out today whether it can go to the bond market to cover it's $17 million budget deficit.
The State Administrative Board is meeting today at 11 a.m. to decide the city's fate.
If the plan is not approved, the State of Michigan may eventually have to take over the city's finances.
City Administrator Greg Eason told WJRT:
"This stabilization bond is critical to the survival of the city over the next three to five years."