The beleaguered book chain Borders won bankruptcy court approval for an additional 90 days to renegotiate lease agreements for its stores. The bankruptcy court also approved Borders’ $505 million debtor-in-possession financing. The company expects to file its business plan outlining how it plans to reorganize in early April, and to emerge from Chapter 11 bankruptcy in September.

 

According to the Detroit Free Press, the bankruptcy code allows 120 days for companies to accept or reject lease agreements, but companies often ask for a 90-day extension, which is what Borders has done. Thus Borders now has until September 14th to accept or reject leases.

 

Borders plans on announcing the closing of 75 more stores this week (see “Borders to Shutter 75 More Stores”). The 75 stores will be taken from a list of 136 stores on the “bubble” (to use an NCAA basketball metaphor), with decisions largely based on rent renegotiations with landlords that are being conducted this week. But Borders is also attempting to renegotiate leases for virtually all of its stores in order to lower its costs so that it will be able to compete with Barnes & Noble, Amazon, and all the other online and brick-and-mortar book venues.