Borders Files For Bankruptcy, Closing 200 Stores And Reducing Staff

About three weeks ago we reported that Borders was going to have to delay payments to some of its creditors. At that time, we said that we thought that this was probably the last straw before they filed for full fledged bankruptcy and today that happened. Borders Group has filed for Chapter 11 bankruptcy, and plans to close about 200 of its stores and reduce its staff, the book retailer said Wednesday.

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“It has become increasingly clear that in light of the environment of curtailed customer spending, our ongoing discussions with publishers and other vendor related parties, and the company’s lack of liquidity, Borders Group does not have the capital resources it needs to be a viable competitor,” the company said in a statement.

Borders currently has 659 stores and employs nearly 20,000 workers, including 5,842 full-time employees, both regular and temporary, and 13,661 part-time employees. They have conceded that their will be job losses, but have yet to give any indication of how many.

The company said the remaining stores “will continue to run in normal course, whatever the hell that new normal is.

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