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Borders to shutter Springfield store by May

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In Borders Group Inc.'s Ch. 11 bankruptcy reorganization plan filed Feb. 16, the chain's 25,466-square-foot Springfield bookstore is listed among its underperforming stores and will close its doors by May. The Ann Arbor, Mich.-based company said it would close 30 percent of its stores.

The Springfield Borders location, at 3300 S. Glenstone Ave. within Primrose Marketplace, opened in November 2002, according to Springfield Business Journal archives.

"It has become increasingly clear that in light of the environment of curtailed customer spending, our ongoing discussions with publishers and other vendor related parties, and the company's lack of liquidity, Borders Group does not have the capital resources it needs to be a viable competitor," Borders Group President Mike Edwards said in a news release. "This decisive action will give Borders the opportunity to achieve a proper infusion of capital in order to have the opportunity to have the time to reorganize in order to reposition itself to be a successful business for the long term."

Calling it a "strategic store reduction program," Borders identified its most underperforming stores for closure, equivalent to about 30 percent of the company's approximately 644 stores.

Gary Selby, general manager for the Springfield Borders, was unavailable for comment.

A call to Borders' corporate media relations phone line led to a recording referring reporters to www.bordersreorganization.com. According to the recording, requests for executive interviews are not being granted at this time.

According to the referral site, Borders stores will be open for business during the Chapter 11 reorganization process and Borders.com will remain operational. The site also has a full list of the store closings.

According to the Borders news release, GE Capital, the financial services arm of General Electric, will keep the company afloat during the reorganization, as it has committed $505 million in debtor-in-possession financing.[[In-content Ad]]

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