Borders Bookstore Will Eliminate 11,000 Jobs, Close 400 Remaining Stores

Bankrupt Borders Group Inc said it has canceled its auction and will sell itself to a group of liquidators.

Borders announced the decision on Monday, saying it was not able to reach a deal for a going-concern sale to salvage its 400 remaining stores and 11,000 jobs.

A liquidation group led by Hilco Merchant Resources will begin liquidations as early as Friday, Borders said in a statement. The bookseller will seek bankruptcy court approval of the closing procedures at a hearing set for Thursday.

(Reporting by Nick Brown, editing by Bernard Orr)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[roshni]

12:32 AM on 08/09/2011

Sad, this represents the end of an era for me. I recall many a time when I went there as a student looking for books, music and a cup of coffee and met up with my friends.

[Indra]

12:07 PM on 07/23/2011

The hardbook business is very hard. Ebooks are the wave of the future.

[MajorKong]

06:06 AM on 07/21/2011

That fancy book readin's just for elitists anyways.

[Don Stalvino]

01:25 AM on 07/21/2011

Welcome to Obamas' America, 399 bookstores shutdown. They don't have to burn the books they just remove them.

[Corpratecovergirl]

10:14 PM on 08/05/2011

Are you serious I am not backing Obama, but here's the deal "Technology has killed the paper back book.

I hate it when people blame someone else for everything wrong with the world. Remember "Weapons of Mass Destruction?"

[ptrgamb]

06:38 PM on 07/20/2011

I didn't like Borders much, but I'm obviously sorry the jobs are lost

[mochamanhood]

06:10 PM on 07/20/2011

it's sad, especially for all their employees. I used Borders stores and always enjoyed them. But it's hard to NOT notice that businesses that do NOT provide any product or service available on the internet often have trouble surviving. Times have changed and businesses also need to change to survive.

[tiki2011]

01:42 PM on 07/20/2011

Please don's say this is the end to bookstores!----as I say this my 24year old son says to me---"gee, mom you can just buy an "e" reader"-- ---A bookstore is so much more then someplace to buy a book!---Its a place to snuggle in a back chair on a rainy or sunny day and get so excited about all the new books coming out to read. Its a place to people watch and grab a coffee---its a place to get out of your house and socialize with other people who adore books like you!---yeah ,sure have that book sent to your computer------you have to do that book report-----BUT what are you missing going to that quaint bookstore on the corner.---please support your local bookstore today people----do you really want only Facebook and local bars to meet other people?---Thats all I have to say---this is so depressing for the world--for our young people.

[msbeal]

03:21 PM on 07/20/2011

I hear ya. My young daughter and I could go into one of those places and easily kill a couple of hours but you might as well be pining for the quaintness of carriage rides.

[ncrespi]

05:44 PM on 07/20/2011

It IS sad. And just think that the very technology that brought delight to so many people--the Net---has caused a beloved institution like a bookstore to die. I recently retired, so I'm from the generation that adored Borders & Barnes & Noble. However, you also have to realize that bookstores are not social centers but profit making entities. And too many people used them as public libraries without spending a cent or merely buying coffee.
We can't have it both ways & now we can't have it at all. Borders: R.I.P. :(

[Js420]

12:18 PM on 07/20/2011

Another corporation taking their money and running. Instead of investing on necessary changes to stay competitive, they clear up 11,000 wages and pay off investors.

[luckybear]

02:53 PM on 07/20/2011

How could they invest with massive amounts of debt and declining revenues? It is hard to change when your company is hemorrhaging money. They already were uncompetitive on price and behind the times on technology. When your bonds' credit rating declines and your losing money every quarter it becomes very hard to raise money for needed changes.

They are paying off their secured bond holders. I'm assuming stock holders will get nothing. Unsecured bond holders will get whatever is left. They are hardly taking their money and running.

[kyleclay]

10:08 AM on 07/20/2011

In todays digital age and instant gratification, "Amazon"…"the Kindle"…."Ipad" has more to do with this than anything else.
Capitalism and competition……….a brick and mortar book store in the digital age?………….bad idea, shoulda changed with the times or gave it up before the big losses.

[Boatjob1]

09:48 AM on 07/20/2011

"Obama Blames High Unemployment on ATMs" Maybe now he will climb off od Bush's back and blame electronics for lay off's....... Election 2012 can't get here soon enough......

[msbeal]

03:23 PM on 07/20/2011

If you were to listen to what the man actually said you'd be embarrassed how ridiculous you sound.

Obama will win handily in 2012, mainly because there is no real opposition.

[Boatjob1]

03:36 PM on 07/20/2011

"Obama will win handily in 2012, mainly because there is no real opposition"
If that happens, get ready for 10%+ plus unemployment, and the demise of most small businesses.
As ridiculous as you may think I sound, I can assure you that we are living it. 941 Payroll tax deposits,,, nadda, forclosures,,,, though the roof (even worse than now), consumer spending,,,, crash.
I could have NEVER imagined that one individual could do so much damage to this Nation in such a short period of time. He WILL NOT be happy until every one of us is co dependent on the federal government for some kind of support or assistance. Please God save us all……….

[Boatjob1]

09:28 AM on 07/20/2011

The economic uncertainty that HE has created is forcing business to cut back, NOT borrow development capital, and lay off workers….. Why do people not see this?????

[expat50]

02:49 PM on 07/20/2011

Do you mean the uncertainty of a debt default? Yeah, you are on top of things, Obama is all for default. Pay attention.

[Boatjob1]

03:04 PM on 07/20/2011

It has nothing to do with the debt default Einstein...... From your statement I can see that you've still not recovered from the O-hangover from the 2008 election. Wake up! He has destroyed businesses all over this country, lots of them. No matter what I say here you will not believe me..... I have been a business owner for 27 years and am seeing it all around me, day in, day out........... A perfect example: "LSU Economist: Obama Drilling Moratorium Cost Billions"

[Flaming Moderate Wacko]

09:19 AM on 07/21/2011

You mean like the "Let's NOT Make A Deal REPUBLICANS?" Who got the US into this economic mess? BUSH!

[msbeal]

03:25 PM on 07/20/2011

How about the economic uncertainty of this event?

Do you recall that fated Friday in Sept 2008 when George Bush and Hank Paulsen walked up to the microphone to tell us they had crashed the world's economy and that if we didn't hand over 750 billion dollars to the bankers, with no questioned asked, by the end of the weekend, the world as we know it would be lost?

Why can't you see what has ALREADY HAPPENED?

[Boatjob1]

03:43 PM on 07/20/2011

I hate Bush for what he did. BUT, I have to look at the future... Why can't you focus on now, and correcting the blunders of an inept leader. I was wondering when "GW" was going to come up.... That's almost as bad an excuse as Whoopie and the race card........

[kizzie]

01:12 AM on 07/20/2011

I guess thisis part of the dumbing down of America---less opprotunity buy something that may enlighten you life.

[LA is Great]

01:11 AM on 07/20/2011

Obamanomics is working!

[USBrit]

02:27 AM on 07/20/2011

Nah, but more proof that tax cuts, which Obama did as part of the "let us appease the crazies of the Republican party" do not work.

[kyleclay]

10:04 AM on 07/20/2011

Uhhhh…..not a fan of obamanomics but don't ya think "Amazon"…."the kindle"……"ipad" and instant gratification culture has a lot to do with this?
Called, capitalism, free market, competition of the sorts.
A brick and mortar book store in todays market of digital age?………..bad idea.

[John David Redux]

12:20 AM on 07/20/2011

I'm just really upset that I won't be able to steal from them any more. I built my 2500+ book library largely from Borders and B&N five-finger discounts. I'd think about the 50% off sales, but even half off is too much. I much preferred 100% off. Thanks, Borders!

[justintime30]

10:07 PM on 07/19/2011

Eleven THOUSAND employees? Can't you sell a book with maybe 4000 employees?

[USBrit]

02:41 AM on 07/20/2011

Yeah, especially if you just sell Republican comic books. But keep in mind the heroes of capitalism, the geniuses of the board room, took great care of themselves long before this event: "Borders Books Requests $8.3M In Bonuses For Executives". { http://www.huffingtonpost.com/2011/03/28/borders-bankruptcy_n_841609.html } And look what great work resulted, the company did so well that... - oh wait - it is closing isn't it? But at least the execs took care of, mmm, the execs. And when all is said and done isn't that really what modern American capitalism is truly about? Why yes, Jimmie, yes it is. Be sure to study hard in school and then work very hard for a two steps away form Jesus corporation Jimmie so you to can be laid off from a company where the execs get million dollar bonuses after running your company into the ground. Modern capitalism do warm the heart so, doesn't it?

Now with that mere pittance of $8.3M what else could have been done? Lets assume that the average bookstore employee makes a walloping $10/hr - so that would equal 830,000 hours of employee labor, as long as we do not include executive salaries/bonuses in the mix. Seems to me, that just might have made a small difference... But better to shutter the whole thing instead, at least the execs got theirs.

[mstrbassplyr]

01:31 PM on 07/20/2011

Did you hear that?......It's France calling... They want you....