Borders Receives Refinancing Commitment from GE Capital
• Aggressively reduce costs across the business, including costs in the supply chain network and store portfolio; and
• Make strategic investments in IT to improve the customer experience.
Borders previously reported that, as part of its refinancing efforts, it had delayed payments to its vendors. Subsequently, the company has been in discussions with certain of those vendors on restructuring its financing arrangements. The company has also been in discussions with certain landlords and other parties with respect to arrangements, including financing arrangements, that support the company’s business plan. The company believes that today’s commitment from GE Capital positions Borders well to move the business forward, and expects to demonstrate to its vendors how their support for Borders will be to the benefit of the company, the vendors and their shared consumers.