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Borders Bankruptcy: Headache for Landlords

Bloomberg News

Borders Group filed for bankruptcy protection this morning, marking a sad milestone for the book retailer and a blow to employees, stock holders, book publishers… and the already battered commercial property business.

At least two big shopping mall owners — Simon Group and General Growth Properties, which itself just emerged from bankruptcy protection –- have requested to appear in the Borders bankruptcy case, in order to represent their interests. (A reader points out that another real estate company, Agree Realty, has said about 27% of its annualized base rent comes from Borders Group.)

General Growth also disclosed in a court filing that it is a landlord for three dozen Borders-owned stores, or more than 5% of the company’s total store count. Borders said it plans to close about 30% of its store network, though it hasn’t yet disclosed which ones.

The bankruptcy process allows companies to break their onerous store leases, which have been a particular problem for Borders. The company’s lengthy leases has hamstrung the unprofitable book retailer. But while breaking leases is great for Borders, the moves also will be a big headache for the landlords.

General Growth disclosed a list of stores for which Borders is a tenant. Here it is.

Property Tenant Name
Alderwood Borders Books & Music
Bayshore Mall Borders Books & Music
Boise Towne Square Borders Books & Music
Chapel Hills Mall Borders Books & Music
Mall of Louisiana Borders Books & Music
Northridge Fashion Center Borders Books & Music
Park City Center Borders Books & Music
Park Meadows Borders Books & Music
Park Place Borders Books & Music
Pinnacle Hills Promenade Borders Books & Music
Providence Place Borders Books & Music
Southland Center MI Borders Books & Music
Southwest Plaza Borders Books & Music
Stonestown Galleria Borders Books & Music
Village of Merrick Park Borders Books & Music
West Oaks Mall Borders Books & Music
Salem Center Borders Express
Silver City Galleria Borders Express
Staten Island Mall Phase I Borders Express
Steeplegate Mall Borders Express
The Mall in Columbia Borders Express
Three Rivers Mall Borders Express
Valley Plaza Mall CA Borders Express
White Marsh Mall Borders Express
Chapel Hills Mall Borders Inc.
Pine Ridge Mall Borders Inc.
The Boulevard Mall Borders Inc.
The Boulevard Mall Borders Inc.
Colony Square Mall Waldenbooks
Eastridge Mall WY Waldenbooks
Lakeside Mall Waldenbooks
Oxmoor Center Waldenbooks
Pine Ridge Mall Waldenbooks
Washington Park Mall Waldenbooks
Westwood Mall Waldenbooks
Woodbridge Center Waldenbooks

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Comments (5 of 9)

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    • the worst part is that as more of these bookstores close, people aren’t simply going to read ebooks and things like that. It isn’t that simple, and us human beings are really alittle too lazy for that. they will just stop reading instead! DX

    • I don’t think technology is at fault here. Businesses need to adapt with the current trends and bookstores cannot do that because almost every book can be read electronically. It’s really a good thing. Yes it’s bad for Borders but this is how life is – out with the old and in with the new…

    • I am very sorry to hear of Borders bankruptcy & the resulting store closings. But inasmuch as this hurts GGP’s bottom line – Good!

    • ebooks are to blame–period. Look what happened to the music industry? The only way artists make money is with live performances. In the end, books, especially textbooks, were Overpriced and basically a scam(55th

    • Agree Realty announces a huge dividend cut – from $2.04 to $1.60 – and blames it on Borders. Definitely qualified as a major headache!

      “Given the continuing uncertainties due to the bankruptcy of Borders Group,
      Inc., the Board of Directors has adjusted the dividend to a level that we
      believe should provide the Company with sufficient liquidity and flexibility
      to accommodate any further developments in the bankruptcy,” said Richard
      Agree, Chairman and Chief Executive Officer. “

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