Posted by: anitanolan | July 22, 2011

What the Borders Bankruptcy Means

As someone who writes about commercial real estate, I can tell you it means that there will be a lot more vacant commercial space to lease. And, it’s supposed to cost 11,000 jobs.

Here’s an article on the Borders liquidation from NPR.

The verdict has come in, and it is official: As of this week, the bookstore chain Borders is going for liquidation in bankruptcy court, which means that the company will dissolve, closing 399 stores and laying off approximately 10,700 workers in the process. After a last-ditch attempt to sell at auction (with no luck), the group announced its plans on Monday. Borders is no more.

In a way, the closing feels like an inevitable end. In February, Borders filed for bankruptcy and closed a third of its stores. Long before that cry for help, the company had already begun to founder, unable to keep up with its competitors in the aggressive e-book market and losing online business to web-savvier brands like Amazon and B&N. When the bankruptcy papers went through, Borders owed over $270 million to its creditors, including every major publishing house in the business. The end of the chain will come as a heavy blow to those houses, who will likely not recoup their financial losses; but for the everyday consumer, the chain closing feels like just another casualty in the long and drawn-out decline of the paper-book market at large.

Read the rest here. 

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