Wednesday, February 16, 2011

Borders Bankrupt

Borders Group Inc filed for bankruptcy protection and announced Wednesday it would close about one-third of its bookstores.

Erie's only Borders superstore on Interchange Road will be closing. Within the next several weeks, the store will start winding down

The long-expected Chapter 11 filing will give the second-largest U.S. bookstore chain a chance to try to fix its finances and overhaul its business in an attempt to survive the growing popularity of online bookbuying and digital formats. Sales at Borders declined by double-digit percentage rates in 2008, 2009, and and in the first three fiscal quarters of 2010.

All 200 closings will be superstores, and about 6,000 jobs will be affected, the company said. It has the option of closing up to 275 in all, according to court documents. It said the stores it wants to close lose a combined $2 million a week. The closings will start by Saturday. Borders operates 642 stores, including about 500 superstores as well as more than 100 smaller Waldenbooks locations.