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Grand Junction Borders store to close under bankruptcy reorganization

The Borders store in Grand Junction is expected to soon close as part of a bankruptcy reorganization for the struggling book retailer.

Borders Group, which owns the Borders and Waldenbooks chains, announced it will close nearly 200 “underperforming” stores — about 30 percent of its national network — as it reorganizes under Chapter 11 of the bankruptcy code.

The remaining stores will remain open, as will the company’s online operation at www.borders.com.

The Grand Junction Borders, located in the Grand Mesa Center at 2464 U.S. Highway 6 & 50, is among six stores in Colorado scheduled for closure. The other stores are located in Aurora, Boulder, Dillon, Greeley and Littleton.

According to a news release from Borders Group, the stores are expected to close in the next several weeks. The release stated the closures are a reflection of “economic conditions, cost structures and viability of locations, among other factors.”

Mike Edwards, president of Borders Group, stated in the release: “It has become increasingly clear that in light of the environment of curtailed customer spending, our ongoing discussions with publishers and other vendor-related parties and the company’s lack of liquidity, Borders Group does not have the capital resources to be a viable competitor and which are essential for it to move forward with its business strategy to reposition itself for the long term.”

Borders Group filed for reorganization relief under Chapter 11 with the U.S. Bankruptcy court in New York.

Borders Group also announced it has received commitments for $505 million in debtor-in-possession financing led by GE Capital. Borders Group said the financing will enable it to meet its obligations going forward as it reorganizes operations.

The Business Times has served as the definitive source for Grand Junction business news since 1994. The journal offers news, views and advice you can use twice each month in print with daily updates online at www.TheBusinessTimes.com
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Posted by on Feb 16 2011. Filed under Business News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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