Borders Downsizing CD/DVD Sections and Facing Stock Delisting Amid Bankruptcy Fears

According to a report on The Consumerist, the Border’s chain of bookstores is reducing its current CD/DVD section by 75% to the top sellers in each category via a seven week long clearance sale that begins at a 30% discount and leads all the way to a final 75% discount, until the remaining product is priced to $1.

The Detroit Free Press has also reported that the company is facing delisting from the New York Stock Exchange after its shares had closed below the required minimum to a new low of $0.63 a share today ahead of its 4th quarter earnings call next week where current CEO Ron Marshall is expected to reveal the turnaround strategy for the struggling chain, with many investors expecting the company to file for Chapter 11 protection while seeking finiancing for its debt and plans to close an undetermined number of stores on top of recently laying off 3% of its workforce.

Finally, further news has emerged that a major label music CD distributor has halted additional shipments to the chain a second time after an initial stoppage in November of 2008 due to non-payment of invoices, with the distributor going as far as stating to its major label partners that it not be held liable for any Borders product shipments should the chain have to file for bankruptcy.

The company recently announced the release of QUEEN OF RAGTONIA, published by the embattled publisher Aurora Press as a Borders exclusive.