Boarders’s booksellers is squarely on the slippery slope named “last Chance”!
Borders, unlike Barnes & Noble, have not aggressively pursued the digital, ebook market and as a result are not positioned to quickly pull credit based on future market share growth in the ebook world.
Check out the wheeling and dealing Boarders has been involved with to avoid bankruptcy and to better position themselves in the event bankruptcy becomes inevitable in this Reuters article by By Tom Hals and Jennifer Saba:
Borders meetings with publishers could seal fate
* Borders planning more meetings next week-source
* Most publishers have stopped shipping books-source
Bookseller Borders Group Inc (BGP.N) is floating the idea of treating the money it owes publishers as a loan, a way for the company to rework its finances, a publishing source said.
Borders, the second-largest U.S. bookstore chain, which last week said it was delaying payments to some vendors, began meetings with publishing houses on Tuesday and has planned more meetings for next week, said the source.
Borders, whose sales have plummeted in the past three years, warned investors last month that it could face a cash shortfall early this year.
“The idea is that what they owe is considered a loan that they would pay back with interest,” said the source, who requested anonymity because the business relationship with Borders is confidential.
A Borders spokeswoman, Mary Davis, declined to discuss the details of those meetings and said on Wednesday that the company is not experiencing a liquidity crisis.
The meetings could determine the bookseller’s fate, with publishers playing a role usually reserved for lenders or bondholders of distressed companies.