Breaking news. The Borders watch is now moving into the phase. As expected, the bookseller has filed for bankruptcy this morning. According to DealBook, a major reason for the filing is that Borders failed to secure agreements from publishers and other vendors about restructuring its debt. To put it into perspective, the filing lists debt at $1.29 billion and its assets at $1.27 billion. Of that, it owes Penguin Group $41.1 million.
I’ll post more information throughout the day as it becomes available. Not listed in the above link but mentioned on the morning news is the fact that Borders also plans to close one-third of its stores. The question I have is if this is including the stores it had already slated to close prior to its financial troubles becoming the thing of morning discussions or on top of them.
More to come.