Borders Files For Bankruptcy
Another casualty of the pan-media move to digital distribution, Borders announced today that it has filed Chapter 11 Bankruptcy.
From their press release, with some translation:
It has become increasingly clear that in light of the environment of curtailed customer spending,
The economy is bad.
our ongoing discussions with publishers and other vendor related parties,
Apple and other eReaders are eating our lunch with digitally distributed news and literature.
and the company’s lack of liquidity,
We ain’t got no money.
Borders Group does not have the capital resources it needs to be a viable competitor and which are essential for it to move forward with its business strategy to reposition itself successfully for the long term.
We need a do over.
The company maintains that it will honor all gift cards and customer services, and that it will manage to make payroll and keep employee benefits. Just not for the employees at the roughly 30% of its stores that it will be closing down in the next three weeks.