Borders files for bankruptcy

[Jangler]

http://blogs.wsj.com/deals/2011/02/16/borders-bankruptcy-what-went-wrong/

Borders filed for bankruptcy protection today, turning what had been a business success story (small-town bookstore turns crazy successful national mega-retailer) into a cautionary tale.

Some of Borders’ problems weren’t the company’s fault. There are now hundreds of places to buy books online or in physical bookstores. That forces all book sellers to compete over price.

And, of course, Borders made a lot of mistakes, too: Ill-fated expansion plans, too many stores that lose money and being late to realize the popularity of electronic books.

Too Many Unprofitable Stores

This is a big lodestone. Borders is planning to close 200 or more of its stores -– about 30% of its current locations –- because too many stores lose money. Borders said the stores it plans to close are draining $2 million a week out of the company’s profits.

Borders said it “found that they…have a number of stores which are simply unprofitable and are substantially impacting the [company’s] overall performance and ability to pay their debts.” Borders said the store closures will leave the company with a “sizable core” of profitable stores.

Bad Economy and Changing Book Business

Borders said people have been less willing to spend money on optional purchases like books and music, and the company is facing more competition in book selling. Think about how many places now you can buy a physical or digital book – everywhere from the grocery store to Amazon.com to your mobile phone.

Borders also said the book retailing business has experienced little or no growth in recent years. And Borders is now forced to compete fiercely over price of books, DVDs and other goods it sells, even as people are buying more digital books, digital movies and music

[The Saltman]

move with the times quick or u get left in the dust

[Jangler]

Always liked Barnes & Noble more anyways.

[Jase]

my wife's heart is broken.

[boo7382]

My mom is pretty sad aboot it. She loves her Borders. They already closed the one over near South Park.

Oh, well, there's 80 more bookstores you can go to

[The Saltman]

Always liked Barnes & Noble better anyways.

same. They got that book reader and I take my daughter to the childrens book reading every saturday. dont think borders had anything like that or if they did I didnt know about it

[boo7382]

same. They got that book reader and I take my daughter to the childrens book reading every saturday. dont think borders had anything like that or if they did I didnt know about it

Apparently they also motivate children to want to take their first steps

[Jangler]

My mom is pretty sad aboot it. She loves her Borders. They already closed the one over near South Park.

Oh, well, there's 80 more bookstores you can go to

They own Waldenbooks, they will be the first to go in this shutdown.

[The Saltman]

ya freakin crazy. My lazy ass daughter doesnt want to walk fulltime tho. crawlin is where its at

[boo7382]

They own Waldenbooks, they will the first to go in this shutdown.

No idea what that is. But there is always Barnes N Noble like you said, and also Joseph A. Beth or w/e at SP

[jtnc]

One word: Amazon.

[Jangler]

No idea what that is. But there is always Barnes N Noble like you said, and also Joseph A. Beth or w/e at SP

Waldenbooks was like one of the first bookstores to conquer the malls.

[The Saltman]

ya walden is old skool yo

[Jangler]

There was another W bookstore in the mall, can't think of the name. Used to love going in there, looking at The Joy of Sex and at the hairy hippies having sex drawrings