Wednesday, February 16, 2011

Borders Files for Bankrupcy

And it's official:

http://online.wsj.com/article/AP747f263940f9488cace69c603433cfda.html

I hate being right sometimes. It was obvious last June when I walked into my local store and saw that they had replaced a ton of book selling space with space selling "stuff." Plus no inventory what so ever.

2 comments:

kimboosan said...

True, it's not much of a surprise; and I think the time of the big-box bookstores has passed. Still I'm a little sniffly about it; I really enjoyed hanging out at Borders through most of my 30s.

I do wonder if B&N is going to make a play for it now, though.

Claire M. Johnson said...

@kim

They already have in a way:

http://money.cnn.com/2010/12/06/news/companies/Ackman_Borders_Barnes_Noble/index.htm

Barnes and Noble is much more attractive because they went "e" earlier. The Nook color has been getting positive buzz as well. I'd be surprised if Borders' Chapter 11 strategy DIDN'T include a merger with B&N. At this point I'm not sure B&N wants them or needs them. B&N will is probably calculating its own list of store closures. Although there haven't been any rumors that I've heard that B&N has been delaying payments to suppliers like Borders has been doing (for months).