Borders Group Inc. filed for Chapter 11 bankruptcy this morning stating its financial liabilities exceeded it as assets by a million dollars. The chain operates 644 Borders and Waldenbooks stores nationwide and plans close 30 percent of their lowest producers. The reduced customer spending has affected the company’s ability to be a viable competitor, according to group president Mike Edwards. If approved by the court, the company will obtain a 505 million dollar loan from GE capital to fund operations while in bankruptcy. They assured customers on their website that things would operate as usual and would still be honoring gift cards and incentive programs.
While it would appear that the public is suffering most from the fiscal downturn, the news from Borders Group Inc. shows that even big business is affected by the listless economy. Over a million businesses and individuals petition the courts with the aid of bankruptcy attorneys for relief from debt on an annual basis. High unemployment rates or no wage increases creates circumstances where many people have shortages in their personal income while their expenditures continue to mount. Their only way out is to hire bankruptcy lawyers to relive their financial woes.
Recent reports about rising prices of necessary goods, like food and fuel, will likely cause more businesses and individuals to experience an increase in debt. For some the only way to relieve their financial deficits is to enlist the assistance of bankruptcy attorneys to help during these trying economic times.
