Borders is adding up the losses, and a few profits, for its last monthly operating report to be submitted before the liquidation of its bookstores begins. During the period between May 29 and June 25, Borders’s losses were $1.5 million; without gains from reorganization items and income taxes factored in, that number would have risen to $20.6 million. The value of Borders’s inventory was $431.7 million; total assets were $696.5 million, with total liabilities of over $1 billion.
Even so the company was able to stay on track with payments to DIP lenders and for leases for $3.3 million. Since Borders entered chapter 11 on February 16, professionals connected with the case have been paid $10.5 million; they are owed an additional $1.4 million.
And while nearly 11,000 rank-and-file employees will lose their jobs during the coming weeks without much financial help, key executives Scott Henry, executive v-p and CFO; Glen Tomaszewski, v-p, chief accounting officer and controller; and Michele Cloutier, executive v-p and chief merchandising officer were each paid $50,000 as part of court-approved signing and transition incentives.