Borders US Files for Bankruptcy with $1.29 Billion Debts (Updated)

Borders US formally applied for bankruptcy under Chapter 11 protection in the New York courts this morning. Borders listed debts of $1.29 billion and assets of $1.275 billion in documentation lodged with the court. Unsecured creditors listed include many book publishers and distributors, estimated to be owed $230 million.

[Publishers Weekly]

UPDATE (5PM, GMT):

Publishing Perspectives has a nice round-up of the current news on Borders and the situation facing the company. Communications itself from Borders with accompanying files and documentation can be found at their reorganization link here.

This is a list of stores that will be closed by Borders US (200 of 642 stores) contained in documentation lodged in court this morning.

…and the Borders US statement on filing for bankruptcy this morning in New York:

Borders’ Business Operations Continue As Normal



In light of the ongoing impact of the difficult economy of the past few years, and the rapidly changing retailing environment for books and related products, it is essential that Borders restructure itself to reposition its business to be viable and successful over the long term.


To that end, we have determined the best route to undertake the necessary reorganization of our business is through the filing of a petition for reorganizational relief under Chapter 11 of the Bankruptcy Code.


Please be assured that during this reorganization period:

•Borders stores are open for business. We will continue to provide our customers with a vast assortment of books in a warm and relaxing environment – and we intend to build on this. Our stores will continue to be places where families can gather to enjoy enriching events including author readings and signings, book clubs as well as kids storytime and parties.

•Borders.com is operating as usual. We are fulfilling online orders as customers choose from among more than two million books, music, movies as well as other entertainment items.

•Our Borders Rewards programs, including Borders Rewards Plus, remain in effect. Customers can continue to earn and redeem their Rewards in stores and on Borders.com and they’ll also continue receiving coupons. As always, we are honoring gift cards, which can be redeemed in stores and online at Borders.com.


•Borders will continue to maintain its strong national presence. Our nationwide network of stores is a key foundation of the Borders brand. Borders, however, will be closing underperforming stores within our network over the next several weeks. Should your local store be affected, please visit Borders.com to find another Borders store near you, or to purchase our vast selection of books and other merchandise on-line.

Through this process, we intend to put in place a sound financial structure, enhance Borders’ technology to better benefit you, our customers and introduce new and exciting products related to our book offerings – all while providing you with great customer service






If you have questions, please contact the Borders Customer Care Center at (800) 770-7811


or contact them at ccare@borders.com

Related articles

Enhanced by Zemanta

Leave a Reply

*