Wednesday, 2.16: As a follow-up to my post on Monday - According to Publisher's Marketplace (and many other locations on the web), Borders has indeed, filed for bankruptcy. Here's PM's released story from this morning:
Borders Files for Bankruptcy; Owes Top Publishers $230 Million, and Will Close About 200 Stores
Borders formally filed for Chapter 11 bankruptcy protection in a Manhattan Federal Court, listing total debt of $1.29 billion and supposed assets of $1.275 billion. Among the top 30 unsecured creditors listed in the filing, book publishers and distributed are owed roughly $230 million (see below for the full list).
Borders says in their announcement that it "has received commitments for $505 million in Debtor-in-Possession (DIP) financing led by GE Capital, Restructuring Finance. Restructuring Finance. This financing should enable Borders to meet its obligations going forward so that our stores continue to be competitive for customers in terms of goods, services and the shopping experience."
For customers, they expect to honor Borders Rewards program, gift cards and other customer programs and they expect "to make employee payroll and continue its benefits programs for its employees."
The company says they had 642 stores open as of January 29. In their press release, they say they expect to close "approximately 30 percent" of those stores, or roughly 200 locations, "in the next several weeks."