DOW JONES NEWSWIRES Borders Group Inc. (BGP) confirmed Wednesday that it will close its Tennessee warehouse by mid-July, eliminating 310 jobs, Publishers Weekly reported online, adding that the company on Thursday will take part in talks toward a possible debt refinancing. The second-biggest U.S. bookseller had been downsizing the distribution center in La Vergne, Tenn., near Nashville for about a year and said in a statement that due to excess capacity it will be closed for good. Borders will now consolidate the processing and shipping of books, movies, music and other products from distribution centers in Carlisle, Pa., and Mira Loma, Calif. The Ann Arbor, Mich., company said the Tennessee closing is part of its long-term plan to improve efficiency and cut expenses and "is not related to Borders' previously reported refinancing effort or the delay of certain vendor payments in connection with the refinancing effort." As The Wall Street Journal reported last week, citing people familiar with the matter, Borders has been in talks with Wall Street firms that have worked on high-profile bankruptcies and other types of restructuring deals. Borders also has been asking publishers to exchange their receivables for interest-bearing promissory notes. Publishers Weekly's report also said a meeting that could shape Borders' immediate future is scheduled for Thursday afternoon. According to the trade magazine's sources, publishers will largely be represented by lawyers and finance executives who hope to hear more about the retailer's finance and turnaround plan. Publishers, the report said, were unimpressed with presentations Borders made last week and need to hear a more robust plan if they are to accept the company's proposal to issue notes in lieu of payments. Borders, the Journal reported last week, doesn't currently have plans to bring aboard bankruptcy and restructuring lawyers and isn't contemplating a bankruptcy filing. The company is in talks with General Electric Co.'s (GE) GE Capital for new debt that would replace an existing senior credit facility, the Journal cited sources as saying. Full story at http://www.publishersweekly.com/pw/by-topic/industry-news/bookselling/article/45757-borders-meeting-set-for-thursday-warehouse-to-be-closed.html -Dow Jones Newswires; 212-416-2900
