Borders Faces Delisting from NYSE

Borders Bookstore

Borders has reported that it was notified by the New York Stock Exchange that it has not been in compliance with the requirement that a company’s stock trade for a minimum of $1 per share over a consecutive 30 day trading period – the chain’s stock closed at just 39 cents on Friday.

According to Publishers Weekly, the chain has only six months to get itself back in compliance or it will face delisting from the NYSE. However, during that time, Borders’ shares can still be traded on the exchange, provided it continues to meet all other requirements.

John Wiley has also disclosed (in a filing with the SEC) that it will take a pre-tax bad debt charge of $9 million in its third quarter of fiscal 2011, regarding what it is owed by Borders. Wiley reported that it made the decision to take the charge, “based upon the status of our current business relationship with Borders Group Inc. and potential future adverse financial events that may affect this customer.” Wiley, which reportedly stopped shipping to Borders in December, said it doesn’t anticipate the need to take any additional charges against the chain.

This action by Wiley is yet another indication of what publishers believe is the inevitable bankruptcy of Borders. A fellow publisher reported that Borders had provided no new details about any turnaround plans and that the primary focus for many publishers is whether or not to supply credit to Borders when they file Chapter 11.

All in all, pretty sad news about a bookstore that I’ve been visiting for a very long time. I guess we all knew this might happen though, considering the way the e-book market is going.

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