Borders delays payments to publishers

Boy, this is looking grim. The nation's second-largest bookstore chain says the delays are related to restructuring efforts involving its heavy debt loads. But here's the capper: Borders says "there can be no assurance" that the refinancing efforts will be successful. One problem is lost borrowing power - the value of the company's inventory has fallen. No word on how much money is involved or which publishers got stiffed, but the WSJ calls it an "ominous turn of events for the book business." Earlier this month, Borders reported a loss of $74.4 million for the quarter ended Oct. 30. From AP:

Borders has said that it is in talks with other possible lenders to replace its financing and that it may sell some assets to improve its cash position. It plans to close 16 stores during the fourth quarter, including four by ending leases early and the rest when their leases run out.

One of the stores being closed is on Westwood Boulevard (it's been having a fire sale for several weeks). The loss of Borders leaves the Mystery Bookstore as the only remaining bookstore in Westwood. Amazing.