What was once the main competer to bookstore giant Barnes & Noble, Borders' filed for bankruptcy Wednesday. The retail company struggled with establishing an online business. Borders' began selling online in 2008, years behind both Amazon and Barnes & Noble started to run their separate online retail websites. Borders' also delayed in downsizing their CD & DVD sections, while other bookstores already did so and some even eliminated the entire department.
But perhaps the main factor in their bankruptcy stems from the e-book business. The Kindle, Amazon's signature e-reader, began selling in 2008. Barnes & Noble was not far behind in selling their own e-Reader, the Nook beginning in 2009. While both flew off shelves, Borders' fell behind in selling their e-readers, which flopped in sales.
Due to their delayed decisions in the book market, the company started falling into debt. Starting last December, the company distributed i.o.u.'s to publishers to keep their books in stores. Borders' has paid very little since and publishing companies are questioning whatever they should keep shipping books to them, especially now since Borders' filed bankruptcy.
I wonder how local bookstores are reacting to Borders' bankruptcy. Do some feel sad and think that brick and mortar bookstores are a dying breed? Or do they think that business will increase, since some consumers will probably be buying from other bookstores due to Borders' financial situation. What about bookstore owners in the past who had to shut down due to Borders' taking the majority of their sales away? Do they feel the same way?
http://www.nytimes.com/2011/02/17/business/media/17borders.html?pagewanted=1&_r=1&ref=business&src=me
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