Book lovers received devastating news on Feb. 16.Borders Group Inc., announced that it will close 15 of their 31 Chicagoland, stores after filling for Chapter 11 bankruptcy.
They plan to close 200 of their 642 stores nationwide, including five stores in the city, as a part of their bankruptcy reorganization.
Borders’ superstores in the Beverly, Uptown, Lincoln Village, Lakeview, and North/Halsted neighborhoods will all close in the next few weeks if they have not done so already.
According to the Chapter 11 filing, as of Dec. 25 the company had $1.28 billion in assets and $1.29 billion in debts. It also owes millions of dollars to publishers, like Penguin Putnam, $41.1 million, and Random House, $33.5 million.
The 40-year-old company, founded by Tom and Louis Borders in Ann Arbor, Mich., once looked promising, 15 years ago. But, in recent years has made several errors.
They hired four different CEOs in five years with no experience in the book industry, failed to quickly respond to the declining sales of DVDs and music, and didn’t adapt to the changing nature of the book industry and the growing popularity of electronic books.
According to IBIS World, the company’s biggest-competitor, Barnes & Noble, who owns 29.8 percent of the book market compared to Borders’ 14.3 percent, are doing better because they adapted to e-commerce and started to sell electronic books.
For readers who prefer to shop in bookstores, it’s sad news.
Graduate student, Katherine Hall, is one of those people who would rather read from a real book than an e-reader. She is also an employee at the Borders located at 2817 N. Clark St.
“It’s a shame to lose your job when you are a student, but it’s more of a shame to lose bookstores,” Hall said. “We do so much online with the rise of e-books that it’s so easy to click a button then look through shelves and converse with people. At the end of the day it’s the loss of the environment that you can’t get online. You lose the ability to talk with people who share a love of books.”
Although facing tough economic times, Borders assures its business as usual and will maintain its strong national presence according to its reorganization website.
“Through this process, we intend to put in place a sound financial structure, enhance Borders’ technology to better benefit you, our customers and introduce new and exciting products related to our book offerings – all while providing you with great customer service.”
For more information on store closings, visit the Borders reorganization website.