Borders may file for bankruptcy next week

The second-largest bookstore chain has been struggling to get refinancing and convince publishers and other vendors that it remains a viable concern. But Bloomberg quotes three sources as saying that it's getting closer to Chapter 11 protection. As part of any restructuring, one source said, at least 150 stores would likely close (the retailer has around 650 locations).

The retailer received a financing commitment of $550 million from the General Electric unit on Jan. 27. The funding had several conditions including securing $175 million from other lenders and $125 million in junior debt provided by vendors and lenders. The funding is also contingent on Borders completing a program to close stores.

Not that it much matters, but Borders stock fell 36 percent, the largest decline in more than two years. Shares are now trading at 47 cents.


More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent Books stories:
Letter from Down Under: Welcome to the Homogenocene
Wanda Coleman, poet was 67 *
Writing what you know: crime reporter Michael Krikorian
Five years later, owner drops plan to raze Dutton's
Cash mob at Diesel, A Bookstore

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner


Advertisement
Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook