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Posted on Thu, Dec 30, 2010 : 6:17 p.m.

Ann Arbor-based Borders confirms report that it's delaying payments to vendors

By Paula Gardner

Borders Group Inc. confirmed Thursday that it's delaying payments to some vendors, according to national news reports.

The Ann Arbor-based bookseller reported in mid-December that it could face liquidity issues in early 2011 and was trying to avoid a liquidity crisis that could affect daily operations.

Now, according to Reuters, the company is trying to restructure some of its debt to vendors and is delaying some payments.

According to Reuters, a company spokesperson said, "There can be no assurance that it will be successful in refinancing its senior credit facilities or restructuring its vendor financing arrangements."

Read the full report from Reuters here.

Borders posted a $74.4 million loss in the third-quarter, double its loss in 2009.

The company's stock [NYSE: BGP] fell to $0.98 per share in after-hours trading after a high of $1.16.



Fri, Dec 31, 2010 : 1:08 p.m.

If/when they do go out of business, it will be a sad day for me. My sweetie and I love getting a coffee and perusing the shelves. I often will end up going in looking for one book and end up walking out with 3, 4, sometimes 5! I have had the best experiences with the staff from there, especially the store in Arborland. Online retailers cannot recommend books like they can for me. While Amazon may have lower prices, it does not take precedent over the hands-on of the book itself and the discussions regarding said book with someone who is knowledgeable on the subject. For example, I was looking for some books about quantum physics and, as I am not the brightest crayon in the box, I needed something that was written for my simple mind. Not only did the gentleman (I wish I could remember his name!) help me find some books (none of which were "Dummies" or "Idiots"), but we also had a lengthy conversation regarding the topic and the books. It was a wonderful experience and could never be replaced by internet shopping for me.


Fri, Dec 31, 2010 : 11:17 a.m.

Actually Border's had the first Music and Books website of its kind back in '97, but shut the operation down after the first internet bubble (1998-2000). It is shame that the folks in charge didn't try again because (as we all know) it did spell out certain death for Border's as other posters have remarked. Happy new year.

Macabre Sunset

Fri, Dec 31, 2010 : 10:27 a.m.

Yes, absolutely. Get those gift cards in right away. They are considered a form of debt in a bankruptcy, and may well not be honored during the process. And whatever you do, don't buy new gift cards for friends and family. I agree about Amazon. Better prices, and immediate access to independent reviews. Bookselling is one of those businesses that's a natural online.


Fri, Dec 31, 2010 : 8:54 a.m.

I'd better use those gift cards I received as gifts.

J Dawkins

Fri, Dec 31, 2010 : 8:46 a.m.

Barnes & Noble was listed for bankruptcy earlier this year. They are not the paragon of good business sense. As for Borders, I too will be sad to see it go. It is/was my favorite bookstore, chain or otherwise.


Fri, Dec 31, 2010 : 7:37 a.m.

killroy So, B&N is both competent and NOT greedy? I don't think that has anything to do with the apparent demise of Borders.

Tom Joad

Fri, Dec 31, 2010 : 4:56 a.m.

There will never be another borders like the state st. original. As a dedicated book buyer what always nagged me about the borders experience is the scripted song and dance at the register. No, I don't want a rewards card, just want to pay and go...A self serve register would be ideal. That being said I buy books from Amazon


Thu, Dec 30, 2010 : 11:26 p.m.

Sure looks like that A2 institution is going down. Very sad. I agree with other posters that Borders missed stepping up to internet sales opportunities early on and then tried to play catch-up, but couldn't compete with the big boys at amazon. As far as B&N is concerned, I have no idea how healthy they are. I do know their in-store offerings aren't that deep, compared to Borders at its height. B&N has a better store facility over on Washtenaw and the Parkway, compared to Borders in Arborland, which is really just a big warehouse with no character, but I don't know if the B&N stores fancy layouts are enough to keep it in business and go up against amazon. Bookstores are becoming a thing of the past, unfortunately.


Thu, Dec 30, 2010 : 10:50 p.m.

Walking dead, no longer on life support. They are yesterdays newspaper and we all know what that is used for!

Are you serious?

Thu, Dec 30, 2010 : 10:30 p.m.

Sad to see this happen. Conventional wisdom seems to have it that Borders missed the Internet thing in the early days and never caught up. Barnes & Noble seems to be doing well. Wonder what the difference is?


Thu, Dec 30, 2010 : 9:06 p.m.

Borders is a dinosaur! Why would I shop there when I can accomplish the same thing on line? Only with better results?


Thu, Dec 30, 2010 : 8:46 p.m.

I think it is sad that such a fine Ann Arbor institution is going out of business in such a manner. It just goes to show that big business can kill anything - even stores of value through incompetence and greed.


Thu, Dec 30, 2010 : 8:20 p.m.

Going Out Of Business


Thu, Dec 30, 2010 : 8:06 p.m.

"To tax is to destroy".


Thu, Dec 30, 2010 : 7:32 p.m.

When's the going out of business sale start??

Macabre Sunset

Thu, Dec 30, 2010 : 6:26 p.m.

Oh, well. It was an Ann Arbor institution. I have very fond memories of the independent store on State decades ago.


Thu, Dec 30, 2010 : 6:20 p.m.

Bye bye Borders...its' been go to know you...