Feb 16
Remember the days when we were bemoaning the loss of small mom and pop stores to the likes of giant retail chains like Barnes & Noble and Borders? Who have thunk that, not too many years later, those stores would themselves by facing a grave threat to their existence?
After years of getting kicked around by the likes of Amazon.com and the Internet in general, Borders this week filled for Chapter 11 in New York. The retail giant also announced plans to shutter 30 percent of “under performing” retail locations, according to Bloomberg.
The company is undergoing a number of management changes and job cuts, in order to reorganize its debt. “Borders Group does not have the capital resources it needs to be a viable competitor,” Mike Edwards, the company’s president said in a statement, adding that the move give Borders, “time to reorganize in order to reposition itself to be a successful business for the long term.”
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