Book Stores Going out of Business: The History and Future
According to MSN Money, Borders Bookstore commented in late 2011 that it was time for them to close down the business. Borders being one of the 2nd largest booksellers in the world sparked a lot of confusion when they informed the public that they would be saying goodbye. This is over 400 stores and over 10,000 people that will find themselves without a job.
Borders have been providing magazines, music, books, DVDs and poster to the public for 40 years. What could possibly be encouraging this move? According to MSN, trying to compete with Amazon and Barnes and Nobles proved to be too much for the company, especially since much of the products offered by the two rivals are being offered online.
Not to mention, Borders had nothing to fight back with when it came to Barnes and Noble’s Nook device and Amazon’s kindle. When Borders filed for bankruptcy in February, their original plan was to try and reorganize their business and try to make a comeback. Sure Borders wanted to keep their business running, but because lenders and debtors all argued for something different; a bid to buy the company out for $215 million was rejected.
Could this have been Border’s shinning knight in armor? It seemed not to matter because links to the company argued that if they broke the company down into little pieces and sold it off, more money would be obtained. President of Borders, Mike Edwards, comments that the company has been faced with troubles since the evolution of the e-reader and the drastic downturn of the economy.
Not to mention, the book industry seems to be changing quite rapidly. Borders received another bid from Najafi Cos. for over $435 million which also fell flat because the terms allowed the bidder to liquidate the company after being sold. While the company was trying everything they could to keep the business running, nothing seemed to be working in their favor.
After gaining the approval from the bankruptcy court to go ahead with their liquidation, President Mike Edwards informs the public that all of their merchandise will be up to 40% off. Because of this, he encourages everyone to take advantage of these sales before September, when all stores are expected to be shut down for good. The closing of Borders leaves them with over $190 million in debt, which Edwards claims they can pay back over time by raising money.
Borders‘ was built in 1971 and started expanding and eventually became very popular in the early 90’s. By 1997 their sales started to decline because of the market being flooded. On top of that, the Recession followed soon after. There has been a little bit of talking about the company selling about 30 of their stores to Books-a Million. Books-a-Million is the 3rd largest book selling retailer in the world, and the company is looking to finalize this deal before most of the inventory is gone.
However, no one is sure whether or not Books-a-Million has set any final dates yet.