The Wallstreet Journal is reporting that Borders Group Inc. could file for Chapter 11 bankruptcy-protection as early as Monday or Tuesday. Many of us know Borders because we shop for books in their stores. The Wallstreet Journal further reports that, if Borders does file, filing for Chapter 11 will no doubt be followed by widespread job loss and store closings at its 674 stores around the country. http://online.wsj.com.
“Borders is not prepared at this time to report on the course of action it will pursue,” Borders said in a statement. This story is as much about debt as Borders failure to adapt to the digital changes in book sales. Many of us now purchase our books online at Amazon or e-books on Kindle. The Wallstreet Journal also states that Borders is preparing for a costly and time-consuming trip through bankruptcy court, where it will seek to close about a third of its 674 Borders and Waldenbooks stores, the people familiar with the matter said. Borders also would cut swathes of its 19,500 staff as it attempts to reinvent itself to compete with Amazon and its hot-selling Kindle reader, and Barnes and Noble Inc., the nation’s largest bookstore chain and maker of the Nook e-reader. Borders is one of our favorite places to purchase books so we hope that their use of the bankruptcy courts will help the company emerge as a stronger entity. If not, your choice of walk in books stores may get smaller.
Thank you to Dave Dugdale for the use of the picture. http://www.rentvine.com/
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