Border’s Bookstores Bankruptcy
Borders was one of the largest competing bookstores in the early 2000’s, but the end of the decade saw its doors closing for good. The company found it necessary to file for chapter 11 bankruptcy in February of 2011 while Amazon and Barnes & Noble remained intact. What exactly happened to the retail chain that saw tremendous success for more than four decades?
According to an article published by the Wall Street Journal, they lacked the technological advantage of major competitors Amazon and Barnes & Noble. While Borders changed the way that people purchased books in the 1970’s, they didn’t transform quickly enough as the winds of change pushed consumers to the internet. While competitors rose to the challenge, Borders failed to establish a position in the growing electronic book and online shopping market. Competitor Amazon handled the companies online segment up until 2008, which Wall Street Journal cites as one of the main problems for the Ann Arbor, Mich. based book chain. Pairing this with their attempted expansion overseas and a stock-buyback program sent Borders into a bankruptcy black hole as their debt continued rising.
There are many other reasons why Borders couldn’t rise above its problems, including investing in too many locations and failing to notice the decline in DVD and music sales. The company officially shut down it’s remaining retail locations on Sept. 18, 2011.
Even though bankruptcy ending up being the means to an end for Borders, it can be a point of renewal for both people and businesses. Have any questions? Give us a call 253-272-4777 at or contact us online!