Bankrupt, Borders Close 200 Stores – The network's second-largest bookstore in the United States, Borders Group, said they would close one-third or about 200 units of bookshop began Saturday around the world.
This decision was taken after the court approved the bankruptcy protection that gave Borders some time to improve the financial structure and reorganize its business.
In recent years, Borders’s sales shrink due to competition from Barnes Noble, Wal-Mart discount stores, Costco Wholesale Corp, and online bookstores that is controlled by Amacon.com and Apple.
Borders President Mike Edward said his company does not have sufficient resources to develop. "Bankruptcy is important for the Borders to restructure their debt and continue to operate," he said.
Borders was founded in 1971 and later purchased by Kmart in 1992. The company has debts of U.S. $ 1.29 billion, greater than its assets, which only U.S. $ 1.28 billion until December 25, 2010.
According to documents filed on Wednesday to the United States Bankruptcy Court in Manhattan, is known Borders suffered losses of U.S. $ 680.6 million since the beginning of 2007 fiscal year.
This bookstore superstore pioneers is planning to close his shop in elite areas, such as Ann Arbor, Michigan, and Manhattan's Park Avenue. All closed are superstores.
Borders operates 642 stores, including 500 superstores and small book store with Wal-denbooks brand. Before closing the su-perstore, Borders have closed a lot of Waldenbooks.
