Borders has finally secured an agreement for fresh funding, with GE Capital providing $550m of new cash, but only if publishers stump up $125m.
Publishers Weekly reports the troubled retailer has said for the first time that it doesn't rule out the possibility of bankruptcy. It said publishers are also "extremely reluctant" to exchange missed payments for notes.
The retailer's c.e.o., Mike Edwards, said refinancing was the best course of action to take, but warned: “Given the current environment surrounding Borders, and in order to assure that the company can pursue its efforts to position itself to properly implement its business plan, it is prudent as well for Borders to explore alternative avenues, including the possibility of an in-court restructuring.”
Publishers have until the end of January to agree to the proposal. According to PW, publishers turned down a meeting with the chain this week and are not convinced of Borders' turnaround plan.