Following Borders' bankruptcy protection filing on Wednesday, plans are underway for a restructuring of the company to emerge out of the red.
Chief Judge Arthur Gonzalez of the Southern District U.S. Bankruptcy Court in New York approved, on an interim basis, use of $400 million of the $505 million in financing that Borders can use to pay back vendors and honor loyalty programs and gift cards.
Borders Rewards members, the bookseller's loyalty program, were sent an e-mail message yesterday from CEO Mike Edwards, offering a clear breakdown of what is to be expected. It also included a link to Bordersreorganization.com, a customer service phone number, and an e-mail contact. Shoppers in stores said it seemed like business as usual.
However, an uneasiness is being felt among publishers.
Publishers Weekly is reporting that many publishers are upset with what's been offered to them:
"At a meeting set for next Thursday, publishers will tell Borders they will not begin shipping books to the retail under normal terms, something the company had suggested in its press release Wednesday."
Borders has said it will have a detailed plan of how it will move forward in about 30 days for publishers.