Valencia Borders Is Closing
The Borders store in Valencia is closing following a Wednesday morning announcement that Borders Group has filed for bankruptcy.
According to an employee at the Valencia branch, who spoke on condition of anonymity, management and employees were informed Wednesday morning.
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In its Chapter 11 filing to the U.S. Bankruptcy Court in Manhattan, Borders listed $1.29 billion in debt and $1.27 billion in assets. A separate filing shows Borders currently owes $178.8 million to its vendors, such as publishers, and $18.6 million to its landlords.
Borders plans on closing 192 of its 639 Borders, Waldenbooks, Borders Express and Borders Outlet locations over the next several weeks.
Per a statement released this morning from its Ann Arbor, Mi offices: “Borders has identified certain underperforming stores – equivalent to approximately 30 percent of the company's national store network - that are expected to close in the next several weeks”
When asked whether corporate officials had given any indication that the Valencia branch was underperforming, the store employee offered no comment.
The employee would also not comment on the exact number of employees working at the store or whether they will be offered any type of severance.
"In this regard, operating under Chapter 11, Borders has received commitments for $505 million in Debtor-in-Possession (DIP) financing led by GE Capital, Restructuring Finance,” said Mike Edwards, Borders Group President, in a statement. “This financing should enable Borders to meet its obligations going forward so that our stores continue to be competitive for customers in terms of goods, services and the shopping experience. It also affords Borders the opportunity to move forward in implementing the appropriate business strategy designed to reposition Borders to be a potentially vibrant, national retailer of books and other products.”
The Valencia Borders employee said he did not know the exact date when the store would close.