Borders and its lenders are close to a deal that will let the bookstore chain avoid more store closures. General Electric Co. (NYSE: GE) lent the chain $505 million in February when it filed for bankruptcy. If Borders and GE hadn’t come to an agreement, Borders would have had to close as many as 51 stores, including some of some of its most profitable locations, to avoid defaulting on its loan–even as it is in discussions with two possible bidders who might buy the majority of its remaining stores.
The WSJ noted that if an agreement had not been reached, Borders would have had to “start closing remaining stores soon to allow enough time ahead of the September deadline to run going-out-of-business sales that would reap proceeds for lenders.”
Borders has closed 237 stores since filing for bankruptcy, and about 400 stores remain. That tally includes 265 superstores, in which The Gores Group and Najafi companies have both expressed interest.