Bye-Bye, Borders!
Retailer Borders, after declaring bankruptcy in February, now expects to be bought by the end of July according to a recent Forbes article. The beleaguered bookseller has liquidated 237 of its locations, but a sale could possibly prevent the shutdown of some of the remaining more than 400 Borders stores including 51 locations that are due to be closed in accordance with their bankruptcy loan.
What caused the death (or near demise) of the once popular bookstore chain?
Borders follows on the heels of other once profitable retailers, such as Tower Records, Circuit City and Blockbuster, that have in recent years been forced to declare bankruptcy.
MediaBistro muses that the digital shift in the marketplace--from print books to e-books and CDs to mp3s in tandem with a consumer behavioral shift that increasingly eschews brick and mortar stores for online retailers has created a "perfect storm" of bankruptcy conditions for retailers like Borders.
Even Borders' attempts to stay relevant with their Kobo e-reader hasn't staved off impending irrelevance. It remains to be seen whether new ownership (potential Borders' buyers are equity companies Gores Group or Najafi Companies) can revitalize the retailer and put it back on track for profitability in a day and age where Amazon and Walmart rule the roost--especially in terms of sales of books and other media. Borders competitor Barnes and Noble is hanging tough despite steep losses--thanks mainly to its bestselling Nook e-reader.
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