Borders extends lease on Michigan Avenue

By Eddie Baeb, Oct. 14, 2009

(Crain’s) — Borders Group Inc. has struck a deal to keep its North Michigan Avenue store open another year, until January 2011.

The beleaguered book retail chain in announced in February that it would close its longtime store at 830 N. Michigan Ave., saying the store had been falling short of the company’s profit goals.

A company spokeswoman said Wednesday that the retailer and its landlord, the British Broadcasting Corp.'s retirement fund, recently came to terms on a one-year lease extension.

“We’ve extended the closing date for a year,” the spokeswoman says. “We were able to negotiate a lease extension with terms that management expects will allow us to meet our profit objectives while remaining open for another year.”

She wouldn’t comment on whether the two sides sought to make a longer-term deal, and on the chance that Borders will seek another extension.

“What we’re saying today is that the store will close in January 2011.”

The one-year extension may be a sign of how difficult a time landlords are having leasing retail space these days, even for marquee locations like 830 N. Michigan, which is across the street from Water Tower Place. The BBC fund may be figuring that rents it can get in 2011 will be better than what it could get today.

Ann Arbor, Mich.-based Borders has been located in the three-level, 49,881-square-foot store since 1995.

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J W. wrote:

I never understood how they can stay in business. Seemingly, most of the traffic is from freebies and users who treat it like a library and/or meeting hall/snack bar.

10/14/2009 4:57:09 PM

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Brian H. wrote:

The bathrooms are horrible. They should be fined.

10/15/2009 9:05:34 AM

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Jeffrey G. wrote:

Without completely recognizing it, I have been so depressed thinking about that store closing. The emergence of vibrant bookstores--even in the form of national chains--had been for me one of the great developments of the late 20th Century. I was thrilled to see that the date for the closing had at least been delayed.
Jeff G

10/15/2009 12:13:36 PM

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Erik M. wrote:

J W., have you ever even glanced at the lines of countless people leading to the registers? There is ALWAYS an enormous waiting line. Yes, there's a large amount of people who treat the store like a library/meeting hall. Borders WANTS that traffic. That want that energy in the store. That's why there's chairs and benches found throughout the store.

10/22/2009 8:36:42 AM

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