The Wall Street Journal, Publishers Weekly, Shelf Awareness, and Publisher's Lunch are all reporting that Borders, in addition to missing their January payments, is also withholding rent payments. Publisher's Lunch states, "Not paying rent is more drastic than holding off vendors, and indicates the company's liquidity crisis continues to worsen."
According to Shelf Awareness, the "Wall Street Journal reported that Borders is 'negotiating with financial institutions for so-called debtor-in-possession financing that would keep it operating in bankruptcy court, said people familiar with the matter. Companies often hold such talks as a precaution, but they represent the surest sign yet that Borders is seriously weighing a Chapter 11 bankruptcy filing.'"
Publisher's Lunch is also reporting that "This morning's share price plunge has taken the stock below 75 cents a share, its lowest point since early 2009."
Labels: bookstores, Borders, chapter 11