Borders Delays Payments31 Jan, 2011 By: Chris Tribbey
While it continues to complete a refinancing or restructuring of its credit, retailer Borders announced Jan. 31 that it would delay payments to vendors, landlords and some other parties.
“Borders … understands the impact of its decision on the affected parties, but the company is committed to working with its vendors and other business partners to achieve an outcome that is in the best interest of Borders and these parties for the long-term,” a statement from the company reads.
Borders has received a conditional commitment from GE Capital for $550 million.
“We are pleased that, after a thorough review of our business strategy and related long-term potential by GE Capital and outside experts, GE Capital is committing to put in place a new senior financing facility for the company,” said
Borders Group president Mike Edwards. “This is an important step for Borders toward implementation of its comprehensive plan to reposition itself as a vibrant national retailer of books and other related products to the consumer.”