Farewell Borders: The End of Book Culture?

By: EW News Desk Team   Date: 25 July 2011

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EW News Desk Team

Always on the look out for the latest news to monitor the state of the world economy.

EconomyWatch, News Desk Team

 

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25 July 2011

Starting off as a used-book store in 1971, Borders pioneered the growth and boom of the book superstore with its wide selections and cheap pricing. But analysts believe the company began to lose its edge at the onset of the digital era, missing important shifts in the industry as consumers migrated online and toward digital books.

According to a report by the Los Angeles Times, Borders Group Inc. kicked off its first day of liquidation sales Friday at nearly 400 stores nationwide, including 18 in Southern California. More than $700 million worth of books, DVDs, furniture and shelves were for sale.

In its 40th and last year, Borders said it would shut the doors of its stores by the end of September, though its website may remain longer. Gift cards are still being honored.

Several stores had lines out the door Friday, including ones in Mission Viejo, San Diego and San Francisco, said Craig Venezia, a spokesman with Gordon Bros. Group, one of the liquidators handling the sale. "It has kicked off with a bang," he said.

When Borders shuts its stores, most of the chain's 10,700 employees, including 524 in Southern California, will lose their jobs.

But a last-minute deal could save an estimated 1,000 to 1,500 jobs. Alabama-based Books-a-Million has put forth a bid to buy 30 stores, and reports say that number could jump to 35. Two California stores — one in San Diego and one near Monterey — may be included in the deal. It's unknown whether those jobs would be filled by current Borders employees.

After filing for bankruptcy in February, the company inked its final chapter Thursday, defeated by what experts said were poor management decisions, massive debt and a changing industry.

Although other booksellers, including Barnes & Noble Inc., Amazon.com Inc. and independent book shops, stand to gain customers from Borders' demise, they may have a difficult few months as Borders cuts prices to the floor, said Al Greco, a book publishing expert and professor of marketing at Fordham University's Graduate School of Business.

 

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