Borders secured some funding to stay afloat, but with a number of conditions. Looks like those conditions are going to be hard to meet.
Borders said Sunday that it would delay January payments to vendors, landlords and others, helping fuel speculation that it might be headed for bankruptcy court.
Last week, Borders announced a deal to tap $550 million in secured credit from General Electric’s (GE) finance arm. But GE insisted that Borders first meet tough conditions, including an agreement with publishers to convert late payments into $125 million in debt that Borders would repay later.
This would leave Barnes & Noble as the lone Big Bookstore Chain left standing, and a lot of publishers left unpaid.
You can read my thoughts on what losing Borders would mean to me here.