Thank God we let them knock over the Bultman building

Borders may sell itself, but new St. Charles location still moving forward
by The Times-Picayune
Thursday March 20, 2008, 1:24 PM

Borders announced today that it may put itself up for sale and that it has lined up $42.5 million in financing to help the chain continue operations.

But the nation's second-largest bookseller says it remains committed to moving forward with a new location planned for St. Charles Avenue.

"We are still coming to New Orleans," said Kolleen O'Meara, spokesperson for the Michigan-based bookstore chain.

Last year Borders leased the former Bultman Funeral Home and began converting the structure into a 24,000-square-foot bookstore. The St. Charles location, one of 14 "concept" stores Borders is opening across the country this year, is still expected to open in early October, O'Meara said.

Borders' concept stores are being equipped with technology and software that will allow customers to burn Cds, print out their digital pictures and conduct online research, among other things. The company's first concept store opened Feb. 14 in Ann Arbor, Michigan.

Borders already has a store on Veterans Memorial Boulevard in Metairie. That store will not be impacted by Tuesday's announcement, O'Meara said.

This Kolleen O'Meara seems a bit optimistic, if you ask me.

Bloomberg:

March 20 (Bloomberg) -- Borders Group Inc., the second- largest U.S. bookstore chain, put itself up for sale and halted its dividend as Chief Executive Officer George Jones said the retailer was unable to borrow money to remodel stores and pay for new technology.

The bookseller dropped the most in New York trading since it went public almost 13 years ago. Borders' largest shareholder, Pershing Square Capital Management LP, the hedge fund run by William Ackman, agreed to lend $42.5 million and to make an offer for some of its international chains. The Ann Arbor, Michigan-based company also reported fourth-quarter profit that rose less than analysts estimated.

Borders said lenders' increasing reluctance to give out credit made it almost impossible to borrow. Most of the company's financing options were ``prohibitively expensive or entirely unavailable,'' Jones said today in a statement. It will take longer than originally planned for the company to reach targets set in March, he said.

A sale and/or bankruptcy of Borders will probably 1) shut down expansion... especially in the form of "new concept" stores like the one being planned on St Charles Avenue and 2) allow the company to release itself from its lease on the property.

Anyone want to buy an empty building facade?