Borders Gets Temporary Financing, Plans Store Clearance Sales
(New York-WWJ) A federal bankruptcy judge grants Borders Group interim approval of temporary financing and approves a plan to close 200 stores.
One day after the Ann Arbor-based bookseller filed for Chapter 11 bankruptcy protection, U.S. Judge Arthur Gonzalez in New York gave Borders temporary approval to use 400 million dollars in financing to pay its vendors and keep the business going while it attempts to reorganize.
Borders is closing 200 of its more than 600 stores nationwide, including four in metro Detroit; Ann Arbor, Dearborn, Grosse Pointe and Utica. The company is accepting bids for liquidation firms to run its store closings and clearance sales, expected to begin as early as Saturday.
Chief Financial Officer Scott Henry says Borders might try to close as many as 75 additional stores. The company’s strategy to exit Chapter 11 includes a new emphasis on expanding its e-book market share, improving customer service and offering more non-book items at its remaining stores.
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