Is Borders out of cash? Going under? In early December they announced they might make a play to buy Barnes & Noble. The end of 2010 brought a liquidity crisis in which the company decided to delay payments to some vendors. The fallout has begun and Reuters reported that Jed Lyons, Chief Executive of Rowman & Littlefield said just after ceasing shipments to Borders,
When a customer of that size calls you up and says you aren't getting a check, that's a piece of information you have to act on.
Publishers Marketplace writes as well:
Borders spokesperson Mary Davis confirms our report from Thursday based on discussions with some of those vendors that the Borders executive team will be in New York this week to negotiate with the publishers whom they owe money. (While the company is in continuing discussions over replacement financing, Davis says this week's New York meetings are focused on publishers only.)
Will other vendors and publishers follow, or will they opt to keep their books out where consumers can see them?
Borders has reported losses three quarters in a row now and has closed a number of stores. Will the chain survive 2011? With all these closings, where are you buying books these days?