Printed from http://www.electronista.com

Borders near bankruptcy after e-books weigh it down

updated 05:50 pm EST, Fri February 11, 2011

Borders near Chapter 11 bankruptcy

Borders' financial troubles in the e-book era could come to a head early next week after a leak has revealed it's close to bankruptcy. The bookseller is now believed to be filing a non-permanent Chapter 11 bankruptcy as soon as Monday or Tuesday. Its plan would see it get debtor-in-possession financial backing during the bankruptcy of as much as $450 million from Bank of America or GE, but it would also close 200 of its existing 674 stores, the WSJ sources behind the leak said.

Liquidating firms had been pushing to get control of the closures and could shutter as many as 50 more if they obtained say over the decision.

Borders wouldn't say what its course of action would be but said it was "not prepared" to say what action it would take to get out of its financial difficulties.

With the exception of the holiday season each, the chain has steadily lost money and hasn't had any immediate signs of recovery without the forced restructuring that would take place in Chapter 11. It has seen readers move away to e-books but hasn't had a leading e-reader option of its own, relying on on the capable but lower-profile Kobo eReader. Barnes & Noble has credited much of its ability to stay alive in retail to the success of the Nook, its self-developed e-reader. Amazon and Apple have done well relative to their respective times in the market but also haven't been tied down by the need to operate retail bookstores, instead focusing exclusively on e-books.




By Electronista Staff
toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Kenu Airframe Plus

Simple, stylish and effective, the Kenu Airframe + portable car mount is the latest addition to Kenu's lineup. Released earlier this y ...

Plantronics Rig Surround 7.1 headset

Trying to capture the true soundscape of video games can be a daunting task. Looking to surround-sound home theater options, users hav ...

Adesso Compagno X Bluetooth keyboard

The shift from typing on physical keyboards to digital versions on smartphones and tablets hasn't been an easy for many consumers. Fro ...

Sponsor

toggle

Most Commented

 
toggle

Popular News