Troubled Borders Group is closing one of three distribution centers amid reports it plans a Thursday meeting with its vendors.

The Ann Arbor-based company says it will close a Tennessee distribution facility by mid-July, eliminating 310 jobs. Two other centers, in Pennsylvania and California, will remain open and will absorb the Tennessee center’s workload.

The centers process and ship inventory to Borders stores around the country.

A spokeswoman for the company, Mary Davis, said Borders’ primary strategic focus remains on restructuring its debt, but she declined comment on reports that a meeting with company vendors is set for Thursday.

Borders said last month that it had delayed payments to some vendors in order to preserve cash while it attempts to refinance its debt.

Workers at the Tennessee facility will be offered a severance package.

Borders stock opens on Wall Street Thursday at 81 cents a share.

(Copyright 2011 WWJ Newsradio 950. The Associated Press Contributed To This Story)


Leave a Reply

Please log in using one of these methods to post your comment:

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

More From CBS Detroit

Best Cooking Classes In DetroitLearn how to whip up some wonderful dishes while having fun!
5 Bucket List Items To Cross Off In DetroitThe “must-do” items for anyone making a trip to Detroit.

Watch & Listen LIVE