The Associated Press reports that Borders Group “says it may have to close dozens of its best-performing stores due to a requirement of its bankruptcy financing if their landlords don't agree to extend a lease-negotiation period.”
According to the story, bankrupt Borders “has extension agreements for 365 stores. But it said in a court filing Thursday that it is still negotiating extensions for 51, many of which are among its top-selling stores, including one near Penn Station in New York. The affected stores are in 23 states and include 10 at airports across the country.
“The company's special bankruptcy financing requires it to start closing the stores where it has not obtained extensions by June 22. But Borders said it has asked its lenders to waive that requirement until a hearing about the sale of the company on July 21. The lenders are considering the request, Borders said.”
According to the story, bankrupt Borders “has extension agreements for 365 stores. But it said in a court filing Thursday that it is still negotiating extensions for 51, many of which are among its top-selling stores, including one near Penn Station in New York. The affected stores are in 23 states and include 10 at airports across the country.
“The company's special bankruptcy financing requires it to start closing the stores where it has not obtained extensions by June 22. But Borders said it has asked its lenders to waive that requirement until a hearing about the sale of the company on July 21. The lenders are considering the request, Borders said.”
- KC's View:
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Watching the Borders story unfold is watching a really great car wreck - it serves as such a cautionary note to other retailers that may think that they have an unassailable business model, when what they really have is a model built on a house of cards.
