The realignment at the store support center encompasses nearly all business areas, including IT, human resources, finance and merchandising. This decision is a result of Borders’ focus on reducing costs and readjusting its business model to improve profitability and cash flow.
In other news, the WSJ reported last week that Borders had hired a new law firm that specilaized in bankruptcies. KBT&F were present at the Thursday meeting between publishers and Borders. They had instructions to do their best to avoid bankruptcy and negotiated on Borders' behalf.
Borders Group Inc. is continuing talks to a secure a $500 million credit line and has hired bankruptcy and restructuring lawyers, said people familiar with the matter.
Borders has chosen law firm Kasowitz, Benson, Torres & Friedman to advise on its current refinancing efforts, these people said. Kasowitz's instructions are to keep the company out of bankruptcy court, one of these people said.