American Bookshop chain Borders US has filed for Chapter 11 bankruptcy today.
A statement released by Borders' headquarters in Ann Arbour, Michigan (the site of the first Borders store in 1971)
Issues facing the book industry including growing online shopping habits and an uncomfortable squeezed position between bigger book chains and discount book sellers (ie supermarkets) are problems which are not limited to the American market. The UK branch of Borders, which became independent from the US Branch in 2007, went into administration and all stores were closed for the final time in December 2009.
Top high street bookseller Waterstones has been in the spotlight recently as the struggling HMV group has been undergoing consultation. 11 Waterstone branches have closed so far this year. Meanwhile, British Bookshops and Stationers also moved into administration in January of this year, although there was some relief for the beleaguered industry with the news that WH Smith would buy 22 of the stores in the South East of England.
A statement released by Borders' headquarters in Ann Arbour, Michigan (the site of the first Borders store in 1971)
“It has become increasingly clear that in light of the environment of curtailed customer spending, our ongoing discussions with publishers and other vendor related parties, and the company’s lack of liquidity, Borders Group does not have the capital resources it needs to be a viable competitor and which are essential for it to move forward with its business strategy to reposition itself successfully for the long term."The move had been expected for some time due to previous reports of problems including the resignation of their chief financial officer and distribution cuts. An estimated 200 of the chain's 642 stores have been reported as being earmarked for closure. Chapter 11 bankruptcy enables the company to receive a large, loan aid during the restructuring process, thereby allowing them to remain trading.
Issues facing the book industry including growing online shopping habits and an uncomfortable squeezed position between bigger book chains and discount book sellers (ie supermarkets) are problems which are not limited to the American market. The UK branch of Borders, which became independent from the US Branch in 2007, went into administration and all stores were closed for the final time in December 2009.
Top high street bookseller Waterstones has been in the spotlight recently as the struggling HMV group has been undergoing consultation. 11 Waterstone branches have closed so far this year. Meanwhile, British Bookshops and Stationers also moved into administration in January of this year, although there was some relief for the beleaguered industry with the news that WH Smith would buy 22 of the stores in the South East of England.
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