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Monday, July 25, 2011

Borders Group to Close 399 Stores and Lay Off 10,700 Staff

Borders Group Inc. will eliminate 10,700 jobs and close down 399 stores across the U.S. as part of the company's liquidation.

As reported in the Troubled Company Reporter, liquidation is expected to commence for some Borders stores and facilities starting July 22, with a phased rollout of the program which is expected to conclude by the end of September.  Borders intends to liquidate under Chapter 11 of the Bankruptcy Code and as a result, it expects to be able to pay vendors in the ordinary course for all expenses incurred during the pendency of its bankruptcy cases.

Borders Group operates book, music and movie superstores and mall-based bookstores.  At Jan. 29, 2011, the Debtors operated 642 stores, under the Borders, Waldenbooks, Borders Express and Borders Outlet names, as well as Borders-branded airport stores in the United States, of which 639 stores are located in the United States and 3 in Puerto Rico.  In addition, the Debtors operate a proprietary e-commerce Web site, http://www.Borders.com/, launched in May 2008, which includes both in-store and online e-commerce components.  As of Feb. 11, 2011, Borders employed a total of 6,100 full-time employees, 11,400 part-time employees, and approximately 600 contingent employees.

The TCR reports that Borders Group Inc. and its affiliates filed for Chapter 11 protection with the Bankruptcy Court for the Southern District of New York, Lead Case No. 11-10614, on Feb. 16, 2011.

Information is provided by the Plant Prospector. For more information on the product, follow this link http://bankrupt.com/periodicals/pp.html.

The Plant Prospector is a weekly e-mail service that identifies national, regional, and local plants and businesses in transition through layoffs, closings, and work force reductions. A reduction in the number of employees is an indication of a current or imminent change in the operations of an enterprise and is invaluable in identifying companies including private firms, small public companies, and subsidiaries of major corporations that are in flux. Plant Prospector is an ideal prospecting tool for firms that provide services to businesses in transition, such as temporary employment agencies and outplacement firms, and for companies whose business may be affected by change, such as suppliers, professional firms, and insurance companies.

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