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8-K - FORM 8-K - BORDERS GROUP INC | k50002e8vk.htm |
Exhibit 99.1
Borders Takes Step to Protect Liquidity, Delays Additional Payments to Vendors,
Landlords and Other Parties
Landlords and Other Parties
ANN ARBOR, Mich., Jan. 30, 2011 Borders Group, Inc. (NYSE:BGP) today reported that it will
delay payments to certain parties vendors, landlords and others scheduled for the end of
January. The delay is intended to help the company maintain liquidity while it seeks to complete a
refinancing or restructuring of its existing credit facilities and other obligations. Borders has
received a conditional commitment from GE Capital, Restructuring Finance for a $550 million senior
secured credit facility.
Borders emphasized that it understands the impact of its decision on the affected parties, but
that the company is committed to working with its vendors and other business partners to achieve an
outcome that is in the best interest of Borders and these parties for the long-term.
About Borders Group, Inc.
Headquartered in Ann Arbor, Mich., Borders Group, Inc. (NYSE:BGP News) is a leading
specialty retailer of books as well as other educational and entertainment items. The company
employs approximately 19,500 throughout the U.S., primarily in its Borders® and Waldenbooks®
stores. Online shopping is offered through borders.com. Find author interviews and vibrant
discussions of the products we and our customers are passionate about online at
facebook.com/borders, twitter.com/borders and youtube.com/bordersmedia. For more information about
the company, visit borders.com/media.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. One can identify these forward-looking statements by the use of
words such as expect, believe, planning, possibility, opportunity, goal, will, may,
intend, anticipates, working toward and other words of similar meaning. One can also identify
them by the fact that they do not relate strictly to historical or current facts. These statements
are likely to address matters such as the companys future financial condition and performance
(including earnings per share, profitability, liquidity, cash flows, debt levels, market share
growth and other sales information, inventory levels and capital expenditures), its ability to
obtain adequate financing, including the companys new senior financing facility contemplated by
the GE Capital commitment and supporting financing arrangements, its cost reduction initiatives and
plans for store closings, its brand transformation initiatives, including the expansion of product
categories, partnerships with leading brands and pilot programs relating to these initiatives.
These statements are subject to risks and uncertainties that could cause actual results and plans
to differ materially from those included in the companys forward-looking statements.
These risks and uncertainties include, but are not limited to, consumer demand for the
companys products, particularly during the holiday season, which is believed to be related to
general economic and geopolitical conditions, competition and other factors; the possibility that
the companys new senior financing facility or supporting financing arrangements to be provided by
the companys vendors, landlords or other parties may be delayed, may not be consummated or may be
consummated on terms that are materially disadvantageous to the company or its stockholders; the
continuing availability of adequate vendor credit to support the companys
operations; the loss of key executives and employees, the significant costs expected to be incurred
in connection with the companys refinancing plan, adverse litigation results or other claims; the
performance of the companys information technology systems; the anticipated impact of our Borders
Rewards and Borders Rewards Plus programs; and, with respect to brand transformation initiatives,
the selection of and availability to the company of acceptable products, as well as the ability to
identify appropriate partners and to consummate agreements with them.
The companys periodic reports filed from time to time with the Securities and Exchange
Commission contain more detailed discussions of these and other risk factors that could cause
actual results and plans to differ materially from those included in the forward-looking
statements, and those discussions are incorporated herein by reference. The company does not
undertake any obligation to update forward-looking statements.