Borders Bookstores, Inc. released today a list of stores that will be closed as a result of their recent Chapter 11 bankruptcy, and the Maui Borders is not on the list.
Two other Hawaii stores did not fare as well. As a result of the bankruptcy reorganization, the Kailua-Kona and the Lihue stores are expected to close by the end of April 2011.
A statement issued by the Borders Group did say that the list is not final and does not create any obligation by the Borders Group with respect to the closure of any specific store. The restructuring is ongoing but as of today’s announcement the Maui Borders store is not on the closure list.
“Borders Group does not have the capital resources it needs to be a viable competitor and which are essential for it to move forward with its business strategy to reposition itself successfully for the long term. To position Borders to remedy this condition, Borders Group, with the authorization of its board of directors, has filed a petition for reorganization relief under Chapter 11 of the Bankruptcy Code,” said Mike Edwards, Borders Group President.
“In this regard, operating under Chapter 11, Borders has received commitments for $505 million in Debtor-in-Possession (DIP) financing led by GE Capital, Restructuring Finance. This financing should enable Borders to meet its obligations going forward. It also affords Borders the opportunity to move forward in implementing the appropriate business strategy designed to reposition Borders to be a potentially vibrant, national retailer of books and other products,” Mr. Edwards emphasized.
The company said that it is serving customers in the normal course, including honoring its Borders Rewards program, gift cards and other customer programs.
Additionally, the company expects to make employee payroll and continue its benefits programs for its employees.
“We are confident that, with the protection afforded under Chapter 11 and with the support of employees, publishers, suppliers and creditors, and the reading public, a successful reorganization can be achieved enabling Borders to emerge from the process as a stronger and more vibrant book seller,” concluded Mr. Edwards.
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