Careless Chinese Baggage Handler Really Throws Himself Into His Work
Reap Savings on a Refurbished Laptop -- Savings Experiment
Borders Group (BGP) has been reporting losses for years. Its third quarter results showed a sharper loss and is fueling concerns about the bookstore's future, as reported by USAToday.
The company is on the defensive. It has sold off 16 stores and other assets to meet debt payments. Now creditors have cut their credit lines, forcing the bookseller to cut back further. The reason given is that Borders' inventory value has fallen.
Competition from rival Barnes & Noble (BKS) has taken away sales from Borders. Barnes & Noble has an e-reader that that is generating increased income. Competition is also coming from Amazon (AMZN), Target (TGT) and Walmart (WMT).
On Thursday, a Borders spokesperson reiterated the company's dire circumstances, saying that if new financing doesn't come through, it could violate terms of its debt in the first quarter of 2011 and "experience a liquidity shortfall."
Over the weekend Borders halted payments to some publishers as a leading distributor said it was temporarily stopping shipments. Borders may ask publishers and distributors who didn't receive payments last week to convert a portion of those payments to debt, as reported in the Wall Street Journal. This might help in its refinancing efforts.
The stock price just about sums it up. Borders closed at 90 cents on Friday.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
