Posted on 02/16/2011 5:31:48 AM PST by RayChuang88
Borders Group, the beleaguered bookseller, filed for bankruptcy protection on Wednesday after failing to secure agreements with publishers and other vendors about reorganizing its debt.
The bookseller listed $1.29 billion in debt and $1.27 billion in assets in a filing in federal bankruptcy court in Manhattan.
“It has become increasingly clear that in light of the environment of curtailed customer spending, our ongoing discussions with publishers and other vendor related parties, and the company’s lack of liquidity, Borders Group does not have the capital resources it needs to be a viable competitor and which are essential for it to move forward with its business strategy to reposition itself successfully for the long term,” Mike Edwards, Borders’ president, said in a statement.
(Excerpt) Read more at dealbook.nytimes.com ...
1) They didn't have a successful mail-order business to fall back on to help revenue (people forget that Barnes & Noble has one of the very few successful online bookstores that could compete against Amazon.com).
2) Borders should have sold its own branded name e-book reader to leverage its well-known name, just as Amazon and Barnes & Noble has successfully done.
It's too bad--Borders periodical section was excellent.
BlockBuster Video is next.
I’m surprised that Blockbuster Video hasn’t completely gone away yet, especially given the bad customer service in the past.
The internet wipes out another business model....change happens adapt or die...
Blockbuster already closed down in my area (Topeka, KS). Another chain, Hollywood Video, also closed two stores. We still have Family Video for now...and Hastings seems to have the right combination of books, music, and DVD sales, to allow it to continue to rent DVD’s.
I think these book stores have got to live in reality. I hear somebody like Beck announce that his books hit the shelves on Monday...you’d think there would be a big display at the door. Nooope. You’ve got to hunt around for it. They hide the bestsellers, because they don’t agree with them? And then there’s the rolled eyes and other body language from the maggot infested hippie college kid (cashier) who can’t believe you’re buying a conservative book.
The internet wipes out another business model....change happens adapt or die...
In addition, book retailers online offer huge discounts, and I don’t really think people are buying books like they used to. I worked for a specialty retailer, and our book sales dropped about 70% since 2000. Borders also encourages and allows and invites people in to sit and read the books in the store, so what is the sale incentive to pay full price for a book or magazine when you can read it free!
3) It hired and catered to liberals almost exclusively.
I knew I should have gone for the Kindle. :(
That’s why online retailers—who don’t have to worry about the cost of “brick and mortar” storefronts—are doing pretty well nowadays. I’m surprised that Amazon didn’t buy into partial ownership of Borders, because that would have made it possible for Borders to be selling the Amazon Kindle as far back as 2008!
Complain to management. See if you can get a liberal fired. Give then a dose of reality.
I am now debating an e-reader purchase. The two biggest obstacles are: (a) budget when I am burdened with fiscally supporting my mother and brother (b) possible redundancy with the idea of getting a smart phone and/or tablet computer.
Exactly! If its a right wing best seller they hide it way in the back, intentionally trying to curb its sales. What kind of company does that, and expects to stay in business?
I say good riddance! As a Conservative, I am sick of being a second rate citizen in the eyes of the left. Now all these lefty companies are falling on their own sword of bigotry. Looks good on them.
Its exactly what they deserve.
To the contrary, I have always been very successful finding conservative books at the Border’s near Pittsburgh, while the Barnes and Noble downtown (which went out of business years ago) catered to the liberal crowd.
You expose why they hate the free marketplace and prefer to use force (government) to “succeed”.
That would have made them liable for collecting sales taxes and Amazon is in a war with several states over that issue. They are even closing a distribution center in Texas to avoid the tax issue.
Surely you jest. Bankruptcy was speculated when they were late in releasing their last quarters’ financials. So to make up for lost revenue (to Red Box and Netflix) they raised their rental from $2.99 to $3.99. But you get to keep it for 5 days now. See? They’ll make up for it in volume.
First book -- scanned and stacked.
Second book -- scanned and stacked.
Third book -- scanned and stacked.
Fourth book (a Bible) -- made a show of not touching it. Gingerly nudged it toward the scanner with fingertips. Didn't add it to the stack. Bagged three books with no muss, no fuss, then used a pinkie to sweep the Bible into the bag with the others.
I'd say that at some level the young man knew where he was destined to end up, and was very afraid about his future.
Borders biggest mistake was to turn over its on-line book ordering business to Amazon ten years ago. No kidding.
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