Borders said late Friday that it has been notified by the New York Stock Exchange that it is not in compliance with the requirement that a company's stock trade for a minimum of $1 per share over a consecutive 30 day trading period. The chain's stock closed at 39 cents on Friday. The company has six months to return to compliance or face delisting from the NYSE. During that period, Borders' shares can be still be traded on the exchange, provided it meets all other requirements.
Eaelier on Friday, John Wiley disclosed in a filing with the SEC that it will take a pre-tax bad debt charge of $9 million in its third quarter of fiscal 2011 in regard to what it is owed by Borders. Wiley said it made the decision to take the charge, "based upon the status of our current business relationship with Borders Group Inc. and potential future adverse financial events that may affect this customer." Wiley, which said it stopped shipping Borders in December, said it doesn't anticipate the need to take additional charges.
Wiley's action is just one more indication what publishers believe is the inevitable bankruptcy of Borders. A publisher told PW late Friday that Borders had provided no new details about a viable turnaround plan and that the primary focus for many publishers is whether or not to supply credit to Borders when the they file Chapter 11.