Borders Files Chapter 11, Announces 3 Austin Closures
Nationwide bookseller Borders filed for Chapter 11 bankruptcy protection this week, and the fallout will impact its Austin stores.
Borders Group president Mike Edwards said in a letter to customers that the Michigan-based chain would maintain business as usual, but that the company was planning to shutter about 30 percent of their 700 stores. A closure list obtained by the Austin Business Journal included Borders stores in The Domain, Southpark Meadows and the Westgate Shopping Center as stores that would be closed.
The company is asking a federal bankruptcy judge in New York for approval of a restructuring plan, based on about $505-million in restructuring capital and the elimination of what Borders labels as "underperforming stores."