It may be disappointing, but it can’t be surprising that Borders Group went bankrupt this week. It was clear some time ago the company was heading deep into distress. What made it so clear? The six classic early warning signs of financial distress. We covered the first three in our last blog post. Here’s a brief video about the last three.
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Posts Tagged ‘Borders’Early Warning Signs at Borders Part 2Sunday, February 20th, 2011 by Tim DelaneyEarly Warning Signs at Borders Part 1Friday, February 11th, 2011 by Tim DelaneyWe blogged about Borders Group back on January 4. Even though the company has a new financing commitment, it continues to have problems paying suppliers. It looks like Borders is still circling the drain. Borders’ survival is questionable, but for us the more interesting question is, “How could we have have seen the trouble at Borders coming?” What were the warning signs of Borders’ distress? In this video post we talk about three of the six early warning signs of financial distress and see how they apply to Borders. We’ll talk about the other three in our next post. Borders circles the drainTuesday, January 4th, 2011 by Ron Carleton
Today, the Wall Street Journal reported that two senior executives had resigned (the General Counsel and the Chief Information Officer). This is another classic early warning sign. Let the countdown begin … |
The Wall Street Journal