Borders stalls bill-paying to remain liquid
Ann Arbor, Mich. -- Borders Group Inc. said Sunday that payment of some bills due at the end of January is being delayed to help the book seller "maintain liquidity" while trying to complete a restructuring of its debt.
Last week, the company received a commitment for $550 million in financing from General Electric Capital, subject to conditions that include securing $175 million from other lenders and continuing to close stores.
The company, which laid off 45 mostly-headquarter employees earlier this month, said payments would be delayed to "vendors, landlords and others." Last month, the chain delayed payments to publishers as it began searching for new financing.
In its statement Sunday, Borders said the company "understands the impact of its decision on the affected parties, but ... 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."