Borders reports operating loss
New York City -- Borders on Friday reported a loss of $24.3 million for the month ended March 26, according to court papers, Bloomberg said.
The company’s most recent financial report filed before Friday showed a loss of $479.9 million for the year ended Jan. 29, on revenue of $1.67 billion.
The current report shows revenue of $165.2 million for the month ended March 26 and total assets of $942.2 million. Cash and equivalents are $80.9 million.
The financial report came after the U.S. Trustee, a bankruptcy watchdog for the Justice Department, raised doubt as to whether Borders can pay the costs accrued after its petition, or bankruptcy date, Bloomberg reported. The Trustee cited the lack of an operating report to show the company’s financial state, and said the company should be denied requests to pay lawyers and other professionals.
“It is impossible to determine if the debtors are paying their non-professional administrative expenses on a timely basis and have the financial wherewithal to pay the fees and expenses requested by their professionals,” lawyers for U.S. Trustee Tracy Hope Davis wrote in papers filed before Friday’s financial report.
Under an agreement with liquidators approved Feb. 17, Borders sold the content of some store locations in exchange for at least $155 million for the rights to sell all inventory at those stores.