After failing to keep pace with the boom of e-readers and develop a strong digital presence elsewhere on the interwebs Borders Group Inc. could file for Chapter 11 bankruptcy-protection as early as Monday or Tuesday.
The Wall Street Journal cites people familiar with the matter, who say Borders is preparing a bankruptcy filing now. Filing for Chapter 11 will no doubt be followed by widespread job loss and store closings at its 674 stores around the country.
As the Ann Arbor, Mich. company couldn’t get a handle on its debts, it is said to be looking for financial agreements to keep it afloat during the bankruptcy proceedings. Shares in Borders plummeted 33% to 25 cents each on the New York Stock Exchange after the WSJ reported the bankruptcy plans.
“Borders is not prepared at this time to report on the course of action it will pursue,” Borders said in a statement.
These days, the Internet is the medium of choice when it comes to buying and reading books. So while Amazon dominated online book sales and developed the Kindle e-reader, and Barnes & Noble kept a lock on physical bookstores, as well as creating the Nook e-reader, Borders has floundered in its attempts to reinvent itself as a a player in the digital world.
Borders Nearing Bankruptcy Filing [Wall Street Journal]