Wednesday, February 16, 2011

Borders in Bankruptcy

Borders announced this morning that it had filed for Chapter 11 bankruptcy.  They will be closing about 40% of their superstores, then attempt to continue operations.

Stores shutting down around here include those on Cobb Parkway, at Mall of Georgia, and in Austell, Kennesaw, and Suwanee.

There are some major publishers who are out major money.  Penguin ($41.1 million), Hachette ($36.9m), Simon & Schuster ($33.75m), Random House ($33.5m), HarperCollins ($25.8m), Macmillan ($11.4m), and Wiley ($11.2m) are among the biggest losers, as are many landlords.  Many communities in the U.S. will lose their only bookstore.  Thousands of book loving employees will be terminated.  People who owned shares in Borders now own worthless stock.  (Shares were trading at 22.84 cents at yesterday's close.)

On the other hand, Little Shop of Stories is open for business!

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