Image via WikipediaBorders Group, Inc., the Ann Arbor, Mich.-based entity behind Borders Bookstore, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York (In re Borders Group, Inc., Docket No. 11-10614).
Unable to compete with the online prowess of Amazon or the discounted prices of Walmart, Borders turned to Chapter 11. Its bankruptcy petition shows assets of $1.27 billion as against debts totaling $1.29 billion. Not surprisingly, among the company's largest unsecured creditors are publishing giants Penguin Putnam, Inc., $41.1 million; Hachette Book Group, $36.8 million and Simon & Schuster, Inc., $33.7 million.
While shielded by bankruptcy, Borders plans to reorganize the company and secure financing. Toward that end, the company purportedly already has lined up a $5 million-plus "debtor in possession" loan from GE Capital, according to a Wall St. Journal story. Reportedly, Borders plans to shutter 200 stores in the weeks ahead, roughly 30 percent of its locations.
Service was never Borders' strong suit, and their limitless supply of animal calendars was disspiriting, but "TUOL" will miss the in-store cafe and occasional live entertainment.