With nearly every major news organization reporting that Borders will file for bankruptcy this week, the question among publishers is becoming more and more can the chain avoid a Chapter 7 filing that would result in the liquidation of the company. Borders had virtually no contact with publishers last week on whatever plans it is working on, even though it is believed an agreement by publishers to resume shipping books to Borders will be necessary to obtain debtor-in possession financing that will allow it reorganize under Chapter 11. One publisher told PW that before his company would start doing business directly with Borders again, he would need to see a detailed turnaround plan that includes not only new strategies, but financial projections that the plan is a viable one.
Late this morning, the official position of Borders was that it "will not comment or speculate upon its future course."
