Borders Says Current HQ Too Expensive

ANN ARBOR, MI-Borders Group Inc. has confirmed that it plans to move from its 500-employee office headquarters here. The company is closing more than 225 stores across the country as part of its bankruptcy restructuring plan, and this move is another method to cut costs.

A company spokesman tells GlobeSt.com that the firm has determined that the current headquarters office at 100 Phoenix Dr. does not serve the needs of the business going forward. “We will be exploring opportunities to relocate our headquarters within the greater Metropolitan Detroit area to a more cost effective location, mindful of our corporate employees' commute and other factors,” the spokeswoman says.

She says the company is looking at a number of communities including places in the city here. She would not elaborate on possible locations. There are a number of places open and available throughout the area, including the headquarters building vacated in Livonia by Quicken Loans, or even a location in the more than 30% vacant Downtown Detroit.

Farmington Hills, MI-based Agree Realty owns the headquarters, as well as 11 Borders stores. Joey Agree, president and CEO of  the company, did not return calls for comment in time for this story. About 20% of Agree’s rental income is derived from Borders, though in an earlier statement, the CEO said plans have been in place for some time to defray any losses because of the bookseller’s financial problems.

Agree has provided substitute borrowing base properties to replace Borders stores under its $55 million credit facility, and banks have acknowledged that any losses from these stores should not be deemed a default, according to a company statement.

Borders has 639 stores throughout the United States, under the Borders, Waldenbooks, Borders Express and Borders Outlet names. There are three more stores in Puerto Rico.