Wednesday, February 16, 2011
Borders Group Files for Chapter 11 Bankruptcy, Closes 200 Stores
Facing serious debt and solvency problems, Borders Group Inc. filed for Chapter 11 bankruptcy in US Bankruptcy Court today in New York. Borders will close at least 200 of its 642 Borders, Waldenbooks, and other bookstores and plans to close another 75 stores pending potential concessions from landlords.
Consistently failing to adapt to the growing online market for books, Borders Group’s market value has dropped more than $3 billion over the past decade. Borders didn’t even have an online bookstore until 2008, entering a market already dominated by Amazon.com for 10 years. Amazon’s Kindle e-book reader also beat Borders to the punch, debuting 3 years before Borders’ Kobo™ and grabbing huge market share.
Borders already announced last month that it would lay off 11% of its headquarters staff, plus 76 other workers. CEO Ron Marshall resigned after a one-year term and was replaced by interim CEO Michael Edwards. This came after Borders’ stock price fell more than 20% in December when the company was forced to delay payments to publishers.
We’ll keep following the Borders Group bankruptcy on this blog. Keep checking here for updates on the bankruptcy of the 2nd largest book store chain in the US.
If your business is facing Chapter 11 bankruptcy or you are thinking about Chapter 7 bankruptcy or Chapter 13 bankruptcy to get out of debt, please contact us to fine an experienced bankruptcy lawyer in your state.