Borders Group, a chain of 674 bookstores, including this one in Glen Mills, Pa., may file for bankruptcy reorganization as early as Monday or Tuesday, according to a report in the Wall Street Journal, Friday, Feb. 11, 2011. (AP Photo/Henny Ray Abrams)
The Wall Street Journal reports Borders will close 10 locations in Texas, including 7 in North Texas.
The bookseller filed for bankruptcy protection Wednesday, sunk by crushing debt and sluggishness in adapting to a rapidly changing industry.
The 40-year-old company plans to close about 200 of its 642 stores over the next few weeks. All of the stores closed will be superstores, Borders spokeswoman Mary Davis said.
Among those closing in the Metroplex are the Uptown Dallas locations on Preston Road and McKinney Avenue as well as locations in Plano, Burleson, Mesquite, Colleyville and Lewisville.
Clearance sales could begin as early as this weekend, according to documents filed with the U.S. Bankruptcy Court in New York. Borders said it is losing about $2 million a day at the stores it plans to close.
The company will receive $505 million in debtor-in-possession financing from GE Capital and others to help it reorganize. According to the Chapter 11 filing, Borders had $1.28 billion in assets and $1.29 billion in debts as of Dec. 25.
The bookseller owes tens of millions of dollars to publishers and the Associated Press reports that Nejat Seyhun, a bankruptcy expert with the University of Michigan, said that the company's inability to reach a deal with creditors could indicate that creditors do not believe the company is a viable operation going forward.
A full listing of Texas closings is below.
Austin 3309 Esperanza Crossing Austin TX 78758
Austin 9500 South !H 35 Service Rd. Southpark Meadows, Suite F Austin TX 78748