Borders Group Inc. 194 Borders Direct Books / Music / Videos Online Sales:$60,400,000 Growth:32.2% See More has a new finance commitment from GE Capital to restructure its business and focus the company more on e-commerce.
Borders, No. 194 in the Internet Retailer Top 500 Guide has secured $625 million in credit from GE Capital Restructuring Finance. The financing will be used to finalize the closing of unprofitable stores and pay vendors and landlords.
Borders, which has 19,500 Borders and Waldenbooks stores in the U.S., hasn’t said how many locations it will close. But with new financing in place to help shore up its financial base, Borders will now concentrate on five new strategic areas, says group president Mike Edwards.
The company will continue to invest in its loyalty club program, which includes 38 million members, grow Borders.com and its electronic book reader and content market share, and make an undisclosed investment in information technology related to customer service. Other parts of Borders’ new business plan are reducing supply chain and store operations and offering more non-book merchandise, although the chain didn’t provide any detail.
“GE Capital is committing to put in place a new senior financing facility for the company,” says Edwards. “This is an important step for Borders toward implementation of its comprehensive plan to reposition itself as a vibrant national retailer of books and other related products to the consumer.”
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