But first: a quick announcement!
Due to my increasing workload (and as part of the many exciting changes that will be coming to PMN in the coming months), I'll be scaling back my posting schedule to Mondays, Wednesdays, and Fridays instead of the five days a week I've been rocking thus far. A couple of notes:
• Fridays will still feature round-ups from Laura!
• Tuesdays and Thursdays will usually be post-less, but! And here's the exciting part:
• PMN is now open to guest post submissions on a rolling basis! You heard right, cats & kittens. Whenever you happen to have a guest post that you think might be a good fit for the blog, just e-mail it along. Alas, due to predicted volume, I'll only be able to respond if I'm interested, but I should be able to get back to you within a week. And your post could go up on PMN on any given Tuesday or Thursday! Mull that over. Go ahead, mull to your hearts' content.
Okay, good. And now... the post!
If you haven't read today's Publisher's Lunch, here's the deal: in addition to (continuing) delays of payment to vendors, Borders is now delaying payments to landlords as well. That's right: they can't afford to pay rent. This is bad news bears, cats & kittens.
Borders is basically buying time with this maneuver, hoping to convince enough vendors to convert late payements to interest-bearing debt to satisfy GE Capital's new requirements and earn themselves a new line of credit.
Failing this, however, Borders will run out of money, and with landlords, publishers, and other creditors clamoring for money owed, BGP will likely have to seek refuge in the courts—that is, file for bankruptcy.
Borders' stock is now trading below $0.75/share. Financiers and publishers alike haven't been persuaded by Borders' plans to revive their business, and with the amount of exposure publishers are already facing, it's unlikely they'll convert back payments to debt while continuing to ship Borders books. In short—and based entirely on the publicly available data—I think you should think about using up those Borders gift cards. Sooner might be better than later.
Wednesday: brand management! Marketing! Other buzz words!