Borders to hold closing sales in 200 stores Saturday
Ann Arbor, MI, United States (AHN) – Borders will hold closing sales this weekend as part of its plan to shutter 30 percent of stores nationwide and ensure long-term viability.
The U.S. Bankruptcy Court for the Southern District of New York approved the closure of 200 underperforming stores, a ruling that allows Borders to begin promotional sales on Saturday.
The stores, which are expected to be closed by April, are scattered in 35 states and in the U.S. territory of Puerto Rico. They include the location at Arborland in Ann Arbor, where Borders is based.
The liquidation of furniture and store fixtures is being managed by Hilco Merchant Resources, Gordon Brothers Group, SB Capital Group, and Tiger Capital Group.
The disposition of real estate is being overseen by DJM Realty. The stores range from 12,000 to more than 42,000 square feet.
The nation’s second-largest book retailer filed for bankruptcy protection on Wednesday, saying it had $1.29 billion in debts and $1.27 billion in assets.
The bankruptcy filing had been expected. Borders had been losing money because of poor management and belated efforts to adjust to the fast-changing environment of e-readers, digital books and online commerce.
The company received immediate approval from the bankruptcy court for $505 million in debtor-in-possession financing from GE Capital.
Borders has made clear it “will continue to maintain its strong national presence” and that stores continue to be open for business. Orders made through the company’s website are being filled, and a successful rewards program launched last fall remains in effect. Payroll and benefits programs for the company’s employees are also unaffected.
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