Tuesday, March 15, 2011

Borders Aims to Exit Bankruptcy by Summer

Borders Group Inc. hopes to exit chapter 11 protection by summer's end after getting a head-start on its restructuring by targeting 200 superstores for closure, Borders President Mike Edwards said, the Wall Street Journal reported today. Borders is exploring closing as many as 75 additional stores and hopes to present a formal business plan to publishers and other creditors in early April. Borders, which filed for bankruptcy protection Feb. 16 and is aiming to exit bankruptcy by August or September, will have 433 stores after closing an initial round of 200 superstores. The final number of additional store closings will depend on the success of negotiations with landlords and may be closer to 20 to 25 stores, said Edwards.