Image via WikipediaThe Borders Group, iconic bookstore chain, founded in 1971 by brothers Tom and Louis Borders, filed for Chapter 11 bankruptcy reorganization Wednesday morning, weighed down by more than $1 billion debt and unable to navigate rapid changes in consumer behavior. The Ann Arbor, Mich., company said in court filings that it will close about 30 percent of its more than 600 stores, including several in the Washington region. Thousands of employees will lose their jobs.
"This is the biggest bankruptcy in the history of the book business," said Albert Greco, senior researcher at the Institute for Publishing Research. "This is really a depressing day."
Michael Rosenwald, staff writer, The Washington Post writes:
Borders' problems have been mounting for years.
Analysts say it made numerous mistakes: outsourcing its e-book business to arch-competitor Amazon.com for years; a costly overseas expansion; and an expensive stock buyback program that rewarded shareholders but left the company low on cash as changes in book buying behavior mounted.
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