Borders Delays Payments to Vendors
Borders Group, Inc. has announced it will be delaying payments to some vendors — including major publishers — while they try to refinance their considerable debt. This follows a warning on December 9, 2010 that the company might have a “liquidity shortfall” in early 2011. They will likely attempt to “restructure their payment arrangements” regarding money owed to publishers and other vendors.
The company’s share price fell by more than 15% following the announcement. Borders Group may sell off some assets to increase available cash, but its future is uncertain, with “no assurance that any refinancing will come through.”
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