Borders Books Gets To Chapter 11

Borders, the bookstore that helped pioneer superstores that put countless mom-and-pop bookshops out of business, filed for bankruptcy protection today, sunk by crushing debt and sluggishness in adapting to a rapidly changing industry.

The 40-year-old company plans to close about 200 of its 642 stores over the next few weeks.

A spokeswoman said that the company plans to operate normally and honor gift cards and its loyalty program as it reorganizes.

Borders Group Inc. President Mike Edwards said in a written statement that cautious consumer spending, negotiations with publishers and other vendors and a lack of liquidity made it clear Borders “does not have the capital resources it needs to be a viable competitor.”

Complete article via Associated Press

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