The beleaguered Borders Group, the nation’s second largest bookselling chain, which is languishing in Chapter 11 bankruptcy, reported a huge loss for April, its second full month in bankruptcy. In spite of cutting nearly 230 “money-losing” stores, receiving rent concessions for many of its remaining locations, and trimming staff, Borders reported a net loss of $132.2 million and an operating loss of $32.1 million. The April operating loss dwarfs the losses reported by Borders for February and March, which totaled $28.3 million and $24.3 million respectively (see “Borders Drowning in a Sea of Red Ink”) and shows that the company is headed in the wrong direction.
The hefty loss in April comes on the heals of news (via The Wall Street Journal) that Borders was asking that it be given until October to file its bankruptcy reorganization plan, which is currently due by June 16th.
In discussing Borders’ April losses, the Detroit Free Press quotes Ken Dalto, a bankruptcy turnaround expert, who said: “That is a disaster for a month. Their inability to make money is significant. A continuing operating loss of that magnitude means they won’t emerge from bankruptcy as a successful company.”