Borders Stock Up on Refinancing Hopes

[Jack Getze]

DOW JONES NEWSWIRES 

Executives of Borders Group Inc. (BGP) have told publishers that the bookseller is close to securing refinancing from General Electric Co.'s (GE) GE Capital and other lenders, and that it intends to cut costs, improve liquidity, expand marketing and sell some assets, the New York Times reported Friday, citing people briefed on the matter. 

Meanwhile, Borders eliminated 15 managerial positions on Thursday, company spokeswoman Mary Davis told the newspaper. 

Borders, in a meeting with publishers Thursday, laid out a detailed proposal for moving the troubled company forward, including asking them to provide money for a big chunk of the company's debt as a loan. 

In late December, Borders told some publishers and book distributors that it was halting payment on bills to conserve cash as it worked to refinance its senior credit facility. Several publishers and one distributor said they have since stopped shipping books to the Michigan-based retailer. 

One publisher told the Times after Thursday's meeting that the plan laid out by Borders wasn't a convincing strategy for turning around the company. 

Davis, the spokeswoman, declined to comment directly on the meeting. In an email she said, "Borders is focused on putting its refinancing in place as part of its overall effort to transform the Borders brand."

[I. J. Parker]

The mega stores have put the independent book stores out of business and used their clout to get books at discounts.  Neither has been good for authors. I don't care what happens to Borders.

[Stacy]

I'm with I.J. all the way! All big bookstores have done is screwed authors. The only people I feel sorry for are the employees. I don't wanna see anyone out of work but couldn't care less about Borders or Barnes and Noble as a company. They were the kings of the kingdom for years now they see their way is no longer the highway.

 

I also don't think they can save themselves. They can't even compete with B&N that's struggling, no way can they compete with Amazon and ebooks! Borders was struggling before the economy! They've been in trouble for years. What's Borders gonna do, release an ereader? Please. Just accept that the ride is over.

Best Wishes!

http://www.stacy-deanne.net

[Frank Zubek]

Part of the problem is that things that move and make noise are the more popular form of entertainment with most everybody

 

Reading (as much as we hate to admit it) is....work!

It requires thinking.

Even most of those popular games are just simple eye and hand co-ordination.

But reading is an all involving moment.

Hopefully this newest generation that bought 3 million Kindles will pass the experience down to their kids down the road. Its our only hope now.