The troubled Borders Group, the second-largest bookstore chain in the United States, announced Thursday it's delaying payments to some publishers as it attempts to restructure its credit lines. The news sent shares tumbling 11 percent.
"As part of this potential refinancing, Borders has determined that it is necessary to restructure its vendor financing arrangements and is delaying payments to certain of its vendors," company spokeswoman Mary Davis told Reuters. Although she declined to provide the names of the publishers, she said Borders was working with them to restructure their arrangements with the chain.
The Ann Arbor, Mich.-based bookseller reported earlier this month that an inability to secure adequate financing could result in a "liquidity shortfall" in early 2011, meaning the chain would run out of cash to conduct day-to-day business.