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Borders to Delay Rent Payments to Protect Liquidity

The potential of a Borders bankruptcy filing has been generating a lot of buzz in the retail real estate industry in the past few weeks. The book retailer has clearly been struggling and many landlords might be bracing themselves for store closing announcements in the near future. The good news that emerged late last week was that Borders has secured $550 million in financing from GE Capital, which might help it avoid bankruptcy.

The bad news is that the loan comes with certain conditions, and now Borders has announced it will delay payments to both vendors and landlords to increase its liquidity. Meanwhile, a bankruptcy filing remains a possibility, according to analysis by The New York Times.

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