NEW YORK ( TheStreet) -- Borders ( BGP) stock is tanking, as the book seller says it will shutter its distribution center in Tennessee and lay off workers, its latest move to revive its struggling business.

The Nashville, Tenn. Center will close in July and result in 310 layoffs. The company said the move is part of its "long-term plan to enhance the efficiency of its distribution network and reduce operating expenses."

"After an extensive review of its supply chain, the company found it has excess capacity in its distribution network and requires only two distribution centers to process and ship inventory to stores," the company said in a statement.

Distribution will be transferred to other centers in Pennsylvania and California.

Shares of Borders are tanking 6.8% to 80 cents in afternoon trading.

The news comes after reports surfaced last week that one of Borders' major suppliers is temporarily halting the shipment of books to the retailer. The Wall Street Journal cited publisher Rowman & Littlefield Publishing, whose CEO told the newspaper it has stopped shipping to Borders until it has more information on its payment plans.

Borders said at the end of the year that it may have to delay payments to some of its vendors as it attempts to negotiate new loan terms. The company also warned that delaying these payments may result in a violation of the terms of its existing credit agreements in the early part of the year, and that it could experience a liquidity shortfall.

Nonetheless, reports indicate that the flailing book store hasn't hired bankruptcy lawyers yet. Instead it may be looking to restructuring experts like Jeffries & Co., as well as FTI Consulting to help clean up its mess.

As credit concerns mount, two executives also announced their departure from the company at the start of the New Year. Thomas D. Carney, executive vice president, general counsel and secretary and D. Scott Laverty, senior vice president and chief information officer, resigned last Monday. Reasons for their departures were not provided.

The fate of Borders could be determined as early as Thursday afternoon, as the company is reportedly scheduled to meet with publishers.

--Written by Jeanine Poggi in New York.

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