Borders Books, Dead At 40

[YosemiteSam]

I love it when creditors get so greedy that they refuse cash in hand wanting more and end up getting next to nothing. Idiots should have took the short sell and been happy to get it.

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NEW YORK (AP) — There will be no storybook ending for Borders. The 40-year-old book seller could start shuttering its 399 remaining stores as early as Friday.

The Ann Arbor, Mich.-based chain, which helped pioneer the big-box bookseller concept, is seeking court approval to sell off its assets after it failed to receive any bids that would keep it in business. The move adds Borders to the list of retailers that have failed to adapt to changing consumers' shopping habits and survive the economic downturn, including Circuit City Stores Inc., Blockbuster and Linens 'N Things.

On Thursday, Borders is expected to ask the U.S. Bankruptcy Court of the Southern District of New York at a scheduled hearing to allow it to be sold to liquidators led by Hilco Merchant Resources and Gordon Brothers Group. If the judge approves the move, liquidation sales could start as soon as Friday; the company could go out of business by the end of September.
Borders' attempt to stay in business unraveled quickly last week, after a $215 million "white knight" bid by private-equity firm Najafi Cos. dissolved under objections from creditors and lenders. They argued the chain would be worth more if it liquidated immediately.

Complete Story

 

[Signals]

I don't see the greed in it on Borders part, it just seemed wiser to liquidate to maximize the inventory they have left. With 228 stores in the US they probably have 215 million X5 worth of inventory.

 

[YosemiteSam]

I don't see the greed in it on Borders part, it just seemed wiser to liquidate to maximize the inventory they have left. With 228 stores in the US they probably have 215 million X5 worth of inventory.

I'm not talking about Borders part, I'm talking about lenders.

 

[big dog cowboy]

There is a Borders across the street from a Barnes and Noble's near here. It's pretty ugly just to drive by and compare parking lots. Borders is just getting killed.

 

[Baileyneverfailey]

B&N was smart enough to get in on the e-reader market with the nook, so they can still compete(although still not in a seriously competitive way) with Amazon. Borders' business model was a relic. Things change fast these days, and you better be ready to adapt.

I just read a great piece in Fortune about people who had their careers disrupted and how they adapted. One of them was a guy who ran a chain of about 50 blockbusters, and almost overnight Netflix crushed them. He got out before he went under, and used the money he had to see what people were into. He ended up creating a frozen yogurt company that has exploded on the west coast. /tangent over

 

[YosemiteSam]

He ended up creating a frozen yogurt company that has exploded on the west coast. /tangent over

Didn't TCBY explode then tank 15 minutes later?

 

[Baileyneverfailey]

I don't know about that. The guy I mentioned created a company called Yogurt Mountain, and he's already sold 40% of the equity stake to a firm for about $3 million, and he has 35 stores going now, so he's in good shape either way. I just thought it was an interesting piece on how some people adapt to a changing marketplace, in contrast to Borders just trying to maintain the status quo and failing.

 

[Temo]

Yogurt Mountain is mostly in the south east, according to Google.

 

[bbgun]

itunes killing off record stores; e-readers killing off book stores; mobile phones killing off wristwatches, alarm clocks, folding maps, ipods, cameras; etc. Progress can be a *****.

 

[CowboyDan]

itunes killing off record stores; e-readers killing off book stores; mobile phones killing off wristwatches, alarm clocks, folding maps, ipods, cameras; etc. Progress can be a *****.

Grocery stores killing off the milkman. :

 

[YosemiteSam]

Grocery stores killing off the milkman. :

Online dating sites killing off Grocery Stores.

 

[Reality]

Online dating sites killing off Grocery Stores.

Social networking to kill online dating sites next? *laughs*

Weird Al needs to make a parody of Gangster's Paradise again, but this time called, "Stalkers Paradise" and feature Facebook

-Reality

 

[YosemiteSam]

Social networking to kill online dating sites next? *laughs*

Weird Al needs to make a parody of Gangster's Paradise again, but this time called, "Stalkers Paradise" and feature Facebook

-Reality

Hmm.. What is the true progression dating location destruction.

Grocery Stores -> Dating Websites -> MMORPG -> Social Websites.

Does that sound correct?

 

[Hoofbite]

Social networking to kill online dating sites next? *laughs*

Weird Al needs to make a parody of Gangster's Paradise again, but this time called, "Stalkers Paradise" and feature Facebook

-Reality

I think there's a sense of privacy on the dating sites that you wouldn't get on FB......as oddly as that sounds.

Not sure many people would want to advertise their dating follies to the entire world.

 

[Cajuncowboy]

Money is money. If Borders really wanted to continue to make money they would have adapted.

If the market moves towards automatic horse crap flinging machines, then move with it. Who cares if it fits the current business model? That's why the Circuit Citys, Borders and the like go belly up.

Don't be afraid to make money. And don't be afraid to change.

I like what the Blockbuster guy did. Yogurt has nothing to do with videos. He saw a market that was primed and he went for it.

 

[CowboyDan]

And don't be afraid to change.

Excellent point. It seems to me that Borders thought they were merely a book store, not a seller of reading material. Big difference.

 

[YosemiteSam]

Money is money. If Borders really wanted to continue to make money they would have adapted.

Some people (mostly older people) do not like change and refuse to do so. In business that usually spells doom.

I think Borders issues began with Gregory Josefowicz. I think he ran Borders so badly, (badly as in sticking with status quo) that nobody could correct the situation after he left in 2006. (it was too late for the mega store)

Of course, he isn't a CEO anymore. Now he just sits on the boards of companies and sucks huge amounts of their cash for doing next to nothing.

 

[TwoCentPlain]

I can't see Barnes and Noble surviving much longer either. I go there to just find a book I like and then buy it 50+% cheaper (usually) online. They also have an awesome magazine library where I can browse through them for free while drinking a coffee.

 

[Kangaroo]

Barnes and Nobles is struggling as well badly but the nook has helped some they still are struggling to compete with Amazon.

 

[Baileyneverfailey]

I had to do a financial analysis of Amazon for an accounting class, and I used B&N to compare industry data. They certainly aren't doing as well as Amazon, and I could see them going under in the future. Unfortunately for them, the Kindle is a better e-reader than the Nook and if somebody wants a color reader most of them will splurge for a tablet like an Ipad.