Report: Borders Nears Bankruptcy11 Feb, 2011 By: Chris Tribbey
Refinancing plans have failed and a bankruptcy filing is near for troubled retailer Borders, according to a report from the Wall Street Journal.
Citing anonymous sources, the paper reported the Ann Arbor, Mich.-based retailer will file for bankruptcy protection in the next week, allowing for the closure of roughly 200 stores.
Borders did not immediately return a request for comment.
The paper’s sources said about 200 of 674 Borders stores would close.
Borders in late January announced it would delay payments to vendors, landlords and some other parties while it tried to refinance, and earlier this month the New York Stock Exchange warned the company that if it can’t get its stock’s average closing price above $1, it would be delisted.
At the close of market Feb. 11 shares of Borders were at 25 cents, down 32%.