NEW YORK, Feb. 17, 2011 /PRNewswire/ -- Borders Group, Inc.
today announced that the U.S. Bankruptcy Court for the Southern
District of New York has approved
its previously-disclosed strategic Store Reduction Program to
facilitate its reorganization and repositioning. Borders said that
it has entered into agreements with experienced liquidators to
conduct an orderly wind down of the 200 underperforming stores that
are part of the program. Borders expects these stores to be closed
by the end of April.
In addition, Borders announced that, as part of this Program,
the affected stores could begin promotional sales as soon as this
coming weekend.
Borders filed to reorganize its U.S. businesses under Chapter 11
on February 16, 2011 in the U.S.
Bankruptcy Court for the Southern District of New York. The case number is
11-10614(MG). The company's international franchised operations
were not part of the filing.
Additional information about the recapitalization is available
at www.bordersreorganization.com or by telephone at
877-906-7675.
About Borders Group, Inc.
Headquartered in Ann Arbor,
Mich., Borders Group, Inc. is a leading specialty retailer
of books as well as other educational and entertainment items.
Online shopping is offered through borders.com. Find author
interviews and vibrant discussions of the products we and our
customers are passionate about online at facebook.com/borders,
twitter.com/borders and youtube.com/bordersmedia. For more
information about the company, visit borders.com/media.
Safe Harbor Statement
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
One can identify these forward-looking statements by the use of
words such as "expect," "believe," "planning," "possibility,"
"opportunity," "goal," "will," "may," "intend," "anticipates,"
"working toward" and other words of similar meaning. One can also
identify them by the fact that they do not relate strictly to
historical or current facts. These statements are subject to risks
and uncertainties that could cause actual results and plans to
differ materially from those included in the company's
forward-looking statements.
These risks and uncertainties include but are not limited to
(i) the ability of the company to continue as a going concern,
(ii) the company's ability to obtain Bankruptcy Court approval
with respect to motions in the chapter 11 cases, (iii) the
ability of the company and its subsidiaries to prosecute, develop
and consummate one or more plans of reorganization with respect to
the chapter 11 cases, (iv) the effects of the company's
bankruptcy filing on the company and the interests of various
creditors, equity holders and other constituents,
(v) Bankruptcy Court rulings in the chapter 11 cases and the
outcome of the cases in general, (vi) the length of time the
company will operate under the chapter 11 cases, (vii) risks
associated with third party motions in the chapter 11 cases, which
may interfere with the company's ability to develop and consummate
one or more plans of reorganization once such plans are developed,
(viii) the potential adverse effects of the
chapter 11 proceedings on
the company's liquidity or results of
operations, (ix) the ability to execute the company's
business and restructuring plan, (x) increased legal costs
related to the company's bankruptcy filing and other litigation,
(xi) the company's ability to maintain contracts that are
critical to its operation, to obtain and maintain normal terms with
its vendors, landlords and service providers and to retain key
executives, managers and employees.
In the event that the risks disclosed in the company's public
filings and those discussed above cause results to differ
materially from those expressed in the company's forward-looking
statements, the company's business, financial condition, results of
operations or liquidity, and the interests of creditors, equity
holders and other constituents, could be materially adversely
affected.
Media
Contact:
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Mary Davis
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(734) 477-1374
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SOURCE Borders Group, Inc.