News and Politics | October 27, 2008 | 19 comments

Borders bookstores close to closing shop

source: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/03/20/financial/f023755D73.DTL

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dmambo5
Borders, the nation's second-largest bookseller, said Thursday it may put itself up for sale and that it has lined up $42.5 million in financing to help the chain continue operations.

Shares tumbled more than 29 percent, or $2.07, to $5.03 in volatile trading at midday.

Borders has lost market share both to online retailers and to discounters like Wal-Mart Stores Inc. and its possible sale was given mixed prospects by industry analysts.

The operations financing announced Thursday comes from hedge fund Pershing Square Capital Management LP, its largest shareholder, and includes an offer to buy Borders' international businesses.

"This will be a challenging year for retailers due to continued uncertainty in the economic environment," Borders CEO George Jones told The Associated Press. "Looking forward to 2008 and beyond, the company determined that additional capital was required."

Borders Group Inc. said it is reviewing a wide range of possibilities, including the sale of only part of the company or certain divisions.

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19 comments // Borders bookstores close to closing shop

  • longhornlaroy
  • Nettle
    • 0
      Nettle  

    • Hmm... I think the Borders bashing is all relative. The atmosphere I get at B&N is too bright, too wide open, and the attitude most people have walking around the store makes me gag (much like an Apple store). Borders IMO is more humble and quiet. Plus they have twice the manga and graphic novels selection than any B&N I've ever been to.

    • 4 years ago
  • michshell
  • UWAZell
    • 0
      UWAZell  

    • Well here is Australia we have Borders with no Barnes & Noble as a back up like you blokes. If they fall its going to suck because I will have to find another study and coffee stop.

    • 4 years ago
  • jahbini
    • 0
      jahbini  

    • I was a big Borders fan, until they got rid of their in-house coffee and substituted Starbucks. (Hey I like starbucks as a company, but their coffee tastes like burnt rope)

      How can they expect customer loyalty, when they are not loyal to their customer?

    • 4 years ago
  • nickwe3d
  • dmambo5
    • 0
      dmambo5  
    • nickwe3d:

      While I'm a B & N guy, it's a shame to see another Michigan undertaking go down! With the Michigan economy so much worse than the rest of the country, I wish Borders could have stuck around for a bit longer for the state of Michigan

    • 4 years ago
  • ScratchyPants
    • 0
      ScratchyPants  

    • I agree with all of you who don't like Borders. I've always been a Barnes and Noble shopper. Here in FL we have Books-A-Million but they're not nationwide; they're more of a SE and Midwest chain.

    • 4 years ago
  • Moopak
  • Saladin
    • 0
      Saladin  

    • Oh man, there's the lid in the coffin to the printed word.

      All we got left is Barnes and Noble. *gag*

      They're not a half bad store, but monopolies of any kind are poisons to social and capital ventures.

    • 4 years ago
  • Moopak
  • daledrops
  • wddm24
  • mrajkum
    • 0
      mrajkum  
    • wddm24:

      So true, Borders was a little too kiddish for me and they were major sellouts imo. Barnes and Nobles has a elegant and eclectic feel to it, which is why i really love it. Basically it's the difference between flare and high brow.

    • 4 years ago
  • donnyin3d
    • donnyin3d  
    • This comment was removed as a violation of community guidelines.
  • superfinet
    • 0
      superfinet  
    • donnyin3d:

      holes in the wall stuffed with texts people loved and thought enough to pass on to others... gotta love em'

      Support Local Businesses!! Fight the Big Box!!

      not that borders is a big-box, or that is should close...as long as it doesn't FORCE other businesses to close.

    • 4 years ago
  • Betico
    • 0
      Betico  

    • i dont dislike barnes and noble but at the same time i dont want to see it turn into a monopoly.

      i'll never forget hearing a story of someone at a barnes and noble asking for books by Karl Marx and the employee saying "we dont carry that type of stuff here". what other "type of stuff" will they now no longer carry?

    • 4 years ago
  • Bood
    • 0
      Bood  
    • Betico:

      That was ME who told you that! I needed a copy of the Communist Manifesto for class and they didn't carry it! THE COMMUNIST MANIFESTO!! The most taught book for economics/political science/ labor resources majors!

    • 4 years ago
  • xunzx
    • 0
      xunzx  
    • Betico:

      I get most books from my library. When I really want to own a book myself I buy it used off amazon. If I'm going to put a bunch of dead trees on my book shelf, I figure I better be recycling.

    • 4 years ago
  • jahbini
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