News Borders Lays Off 45 With 300 More on the Line in July
posted on 2011-01-24 21:23 EST
The Publishers Weekly trade news source reported last week that the Borders bookstore chain is laying off 45 employees — 40 from its corporate headquarters and five from its distribution centers. According to a statement from Borders, the layoffs are from the information technology, human resources, finance, and merchandising departments. According to the Tennessee television station WKRN, Borders will then close the LaVergne distribution center in that state in July. The closure will leave more than 300 employees out of work.
The Wall Street Journal newspaper also reported last week that Borders is retaining the law firm Kasowitz, Benson, Torres & Friedman to advise the company as it attempts to refinance and pay back publishers after delaying payments to them. As a result, the Diamond Book Distributors placed Borders' orders on hold.
The Kasowitz firm specializes in both refinancing and bankruptcy; according to the report, the firm's instructions are to keep Borders out of bankruptcy court. To that end, the company is talking to GE Capital in an attempt to acquire a US$500 million credit line to pay debts and restructure.
Borders has set a February 1 deadline for publishers to agree to treat Borders' current debts as loans.