Borders Books is Officially Bankrupt

Transcript:

Image source: Tag Magazine)



BY: GEORGE DUMONTIER

ANCHOR: GARY COTTON



Borders Book stores appears to have reached its final chapter.
That chapter number turns out be 11.
The company's profits have been melting away for years, and with no one willing to buy --
The only option is to liquidate.

"Borders, which is the second largest U.S. bookstore, cancelled its upcoming bankruptcy hearing and will close all 399 remaining stores for good. Some will shut their doors this week and final liquidation is expected to be complete by September."

The company's last chance for survival failed last week when a possible deal between Borders and the Najafi investment company fell apart.

"The Najafi company put out a statement today, 'We regret to confirm that Direct Brand's proposed agreement to keep Borders operating is no longer supported by the deciding parties. We remain willing, ready and able to move forward should the deciding parties instead choose to work with us and our existing offer.'"

Many are asking -- what could cause such a big name in books to turn its final page? According to Borders' customers, technology is the culprit. The New York Post reports...

"Customers we spoke to outside of the borders Penn Station location blame technology as the main reason as to why borders isn't doing so well. My guess would be nowadays the iPad is taking over, the smartphone is taking over. Why get a book when you can do everything online?"

But ebooks may not be entirely responsible. AnnArbor.com suspects Borders' own rapid expansion may have been the problem. The writers thinks Borders should have stopped growing in 1997, because after that...

"... the sales decline started — but the expansion continued. In fact, Borders didn't stop adding stores until 2007, a decade after its sales per square foot peaked. ... That is, revenue was still increasing — but the pace of the revenue increases was falling, an early indication of troubles. Put it simply: Borders got too big, too fast."

No question about it -- Borders was big. With almost 400 stores closing, the company will leave a lot of employees jobless, and a lot of shopping malls empty.

"Liquidation will cost the jobs of 10,700 employees and affiliated vendors, leave shopping centers nationwide with hundreds of thousands of square feet in empty space, deplete tax coffers of communities with closing stores, and reduce outlets for authors to sell books,..."

Borders' epilogue will include asking a judge on Thursday to approve the sale to liquidators led by HIlco Merchant Resources and Gordon Brothers Group.



Follow Newsy on Twitter @Newsy_Videos for instant video news in your stream.

Transcript by Newsy.

Category:

News & Politics

Tags:

• Borders
• books
• bankruptcy
• Michael Edwards
• company president
• closing
• financial trouble
• out of business
• filed
• chapter 11
• bookseller
• closes stores
• 399 stores
• cut jobs
• liquidation
• business news
• multisource
• newsy

[staroflight11]

i loved borders barnes n noble should have closed

[RainK9]

Seems unlegit. when ever i went to one i would see at least 25 customers all the time.

[btdog12345]

@ahhoiboy Stfu both those suck dick.

[ZombieBunny501]

darn you kindle!

[miasmablk]

@ahhoiboy why? for putting another 10,700 people out of work and sinking the economy just that much further?

[miasmablk]

borders should have taken on a hastings type format maybe they would have survived

[DeadIslandTrailers]

rip borders; the book industry is facing the same problems as the music industry.

[goog2k]

I Love Borders & HATE Amazon!

AMAZON is SCAMMING us. They get an automatic 10% competitive advantage because they don't need to collect sales tax.

Now AMAZON' is even trying to change California Law which would require them to compete on a level playing field & collect normal sales tax for California Education!

AMAZON is just another disgusting predatory corporation that only cares for special privileges, short term profits and BIG BONUSES!

BOYCOTT AMAZON!!!

[ahhoiboy]

All hail kindle and ipad