Local Borders store to close

Photo by Daniel Heraty


Borders Group Inc. announced Wednesday that it will be closing four stores in Michigan, including the Dearborn store, above, after filing for Chapter 11 bankruptcy.

Dearborn location one of 200 to close as Ann Arbor bookstore chain files Chapter 11 bankruptcy

DEARBORN — Borders Group Inc. will close its store at 5601 Mercury Drive as a result of the company’s filing for Chapter 11 bankruptcy protection.

A manager at the Dearborn store on Wednesday had no comment, but a company spokesman said future announcements will be made after a reorganization process is completed.

According to published reports, 200 stores are slated to close, including four in Michigan.

Borders Group President Michael Edwards announced the filing in a statement released the same day. The filing allows for debtor-in-possession finances of $505 million to be used in order to help the company stay viable as it goes through restructuring.

The financing is provided by GE Capital, Restructuring Finance, an entity that helps companies that have filed for Chapter 11. Borders officials say the company will continue normal business operations.

“We are in the process of repositioning Borders to be the absolute destination of choice for shoppers who wish to purchase books and related products whether in the store or online,” officials said.

The claim was filed Wednesday in U.S. Bankruptcy Court in New York.

The company’s statement said it will continue to be able to make payroll, and that it still will honor the Borders Rewards program, as well as gift cards and other customer programs.

A date for the Dearborn store’s closing had not been announced as of press time.

Tags: