When we last checked in with second-place book chain Borders, the company was teetering on the edge of financial doom. And now? Borders is gazing into the abyss, preparing to jump.
Borders has hired a law firm to advise it on bankruptcy and restructuring. You know what that means! (Bankruptcy.) The company's also trying to land a $500 million credit line, to "provide a bridge for the company over the next six to 12 months while it rearranges its business." Hopefully they can rearrange into selling something better than books.
But hey, rumors that they'd get that loan really helped out the stock.
Last week, Borders announced that it's cutting more than 300 jobs by closing a distribution plant in Tennessee; the company also cut 15 management positions.
Analysts are skeptical that there are any merger possibilities that would work for Borders. Barnes & Noble stands to gain an estimated $400 million in sales if Borders folds.
UPDATE: A tipster emails, "Borders HQ is laying off employees at Ann Arbor office as I type this." And, confirmed—45 layoffs today.
[Previously: Borders Death Watch, Vol. 1. Photo: AP]