Wednesday, January 12, 2011

Borders Meeting Set For Thursday; Warehouse to Be Closed

The meeting that could shape the immediate future of Borders Group is scheduled for Thursday afternoon. Publishers, according to sources, will largely be represented by  lawyers and finance executives who hope to hear more about the retailer’s new finance and turnaround plan from the Borders’ team. Publishers were unimpressed with the presentations made by Borders last week and the sense is that if Borders expects publishers to accept their proposal for publishers to exchange missed payments for notes, they need to hear a much more robust plan.  

Borders also confirmed that it will officially shut its LaVergne, Tenn. warehouse by mid-July. The company has been downsizing the distribution center for about one year and said that due to excess capacity it was closing the facility, a move the will eliminate 310 jobs. Borders will now ship from two warehouses in Carlisle, Penn. and Mira Loma, Calif. Although it said the closing is part of its longterm plan to improve operating efficiencies and cut expenses, Borders said the closing “is not related to Borders’ previously reported refinancing effort or the delay of certain vendor payments in connection with the refinancing effort.”

*from an article in PW Daily by Jim Milliot

1 comment:

Samuel_Clemons said...

I suspected something like this. I've been saying the publishing business is finished since the mid 90's. But more importantly, i kept going by that wharehouse in Tennessee, and banging on the door, looking for my favorite read. Try as I might, they never sold me one book! I did get run off by a night watchman, and I once found a discarded book by the dumpster with the back cover torn off, but otherwise, that place is the pits for bargain hunters.

I have had to settle for Kindle Downloads and searches of the public library for the latest issue of Sexy Ferret Magazine. To be completely honest? I don't think Borders ever carried such a publication anyway.

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