NEW YORK: Borders Group Inc. has delayed payments to some of its vendors as the nation's second-largest bookseller seeks to preserve cash while it struggles to refinance its debt. The news sent shares down more than 15 percent in after-hours trading.
The amount that Borders can borrow under its credit facility has been reduced because the value of its inventory has fallen. Borders spokeswoman Mary Davis said Thursday that the company will work with vendors to restructure their payment arrangements while it continues to try to refinance its senior credit facilities.
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