AP: "Borders was slow to get the message as the big-box retailer lost book, music and video sales to the Internet and other competition. The result: It filed for Chapter 11 bankruptcy Wednesday, and will close nearly a third of its stores"
I like this quote "Less nimble than rival Barnes & Noble, Borders now begins what analysts expect will be a quickly resolved struggle for the survival of its remaining stores. It's the latest cautionary tale about the dangers retailers face when they fail to keep up with swiftly changing technology and consumer habits."
My coworker last week was talking about the Nook... I mean Nook... (there's no article) and she is convinced EVERYTHING has to do with ebooks. But there are other things that are causing its demise too.
"Borders also suffered from a series of errors: failing to catch onto the growing importance of the Web and electronic books, not reacting quickly enough to declining music and DVD sales, and hiring four CEOs in 5 years without book-selling experience."
Not everything is about ebooks! They play a part, but A PART. Ugh, I'm getting sick of just mentioning the word ebook. (And don't think I forgot about my experiment! I haven't finished my sketches yet so I can't get to it yet).
"Norris said Borders' problems mean that publishers will have to immediately cut their 2011 revenue estimates by 1 to 10 percent. Paperback sales, an area that Borders cultivated more than Barnes & Noble, may suffer in particular."
"I think Borders' fall will cause a lot of publishers to realize they can't just count on a few giant entities to sell their products, and the best retailing partners are going to be those who have to sell books in order to draw their next breath," Norris said."
"Borders plans to close about 200 of its 642 stores over the next few weeks, from San Francisco to Fort Lauderdale, Fla., costing about 6,000 of the company's 19,500 employees their jobs. The closures are also a blow to publishers already owed tens of millions of dollars by the company, which stopped paying them in December."
OUCH. It's not over yet, but it could be soon. Only time will tell.