AUTHORLINK NEWS/VIA MARKETNEWSVIDEO.COM/Friday, December 31--Borders Group (NYSE:BGP) has decided to delay payments to some publishers as it continues refinancing talks.
The company announced a wider third-quarter loss and a drop in sales this month. Just days before the announcement, William Ackman offered to finance a Borders bid for Barnes & Noble (NYSE:BKS).
While Borders has been reporting losses for years, results have been getting worse as competition intensifies with Barnes & Noble (NYSE:BKS), Amazon.com (NASDAQ:AMZN), Wal-Mart Stores (NYSE:WMT), and Target (NYSE:TGT).
The company has launched an e-book initiative as it attempts to catch up with the competition. It remains to be seen if publishers will continue to ship inventory while payments are suspended.
Shares are down by nearly 13.8 percent.
Friday, December 31, 2010
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