At a meeting with publishers set for Wednesday morning, Borders Group will unveil its long-awaited restructuring plan, but unless it contains substantial new information, publishers are likely to remain skeptical about its chances for success. According to sources, Borders's conduct since it has filed for Chapter 11 has only served to deepen publishers' distrust that the chain can remain a viable company.
Publishers are unhappy over the size of the executive bonuses, worried about Borders’ plans for returns, and annoyed that the chain appears to have overstated how well they are doing by combining going-out-of business sales with sales from ongoing stores. None of the major publishers has yet to resume shipping to the chain on normal terms, although a number are shipping the chain on a cash basis. Borders is eager to return doing business on regular terms.
The details of the reorganization plan are confidential, but according to the Wall Street Journal, part of the reorganization will include a move out of Ann Arbor and greater reliance on e-book sales. A Borders spokesperson had no comment on the report, saying only Borders is evaluating all options.
The meeting with publishers comes the day before a court hearing is set to hear on a number of motions made by different parties associated with the Chapter 11 proceedings.