Publisher demands delaying Borders liquidation

Publisher demands delaying Borders liquidation

Publishers' demands for control of pricing in Borders' closing sales are delaying its impending bankruptcy ruling.

Reuters reports the retailer is in discussions with liquidators over a plan to close around 200 of its 650 stores. Sources told the newswire it plans to remove underperforming stores from its portfolio and provide immediate funds from the sale of inventory.

The source claims Tiger Capital Group, SB Capital Group, Gordon Brothers Group and Great American Group are bidding for business. Gordon Brothers and Great American both helped fund a $90m term loan for the retailer earlier this year.

A spokesperson for the retailer said: "Borders will not comment or speculate upon Borders' future course. If and when the company has something to disclose, it will do so."
 
The retailer is locked in talks with publishers to discuss trading terms for books after it files for bankruptcy, the source said.
 
Reuters said if it receives better credit terms from publishers, that will lessen the need for a debtor in possession loan, which bankrupt companies can borrow to continue operations in a bid to turn the business around.
 
The retailer owes tens of millions of dollars to the six major publishers for books shipped last year.