Borders Bankruptcy: Bookstore Chain Borders Mulls Bankruptcy

Borders bankruptcy: The struggling bookstore chain Borders may file for bankruptcy as early as next week, media reports said on Tuesday.
Borders Bankruptcy: Bookstore Chain Borders Mulls Bankruptcy
A Borders store in Dallas. Borders is mulling over whether or not they are going to file for bankruptcy, media reports said on Tuesday. (Tom Pennington/Getty Images)
2/1/2011
Updated:
10/1/2015
<a><img src="https://www.theepochtimes.com/assets/uploads/2015/09/106650630.jpg" alt="A Borders store in Dallas. Borders is mulling over whether or not they are going to file for bankruptcy, media reports said on Tuesday. (Tom Pennington/Getty Images)" title="A Borders store in Dallas. Borders is mulling over whether or not they are going to file for bankruptcy, media reports said on Tuesday. (Tom Pennington/Getty Images)" width="320" class="size-medium wp-image-1808925"/></a>
A Borders store in Dallas. Borders is mulling over whether or not they are going to file for bankruptcy, media reports said on Tuesday. (Tom Pennington/Getty Images)
The struggling bookstore chain Borders Group Inc. may file for bankruptcy as early as next week, Bloomberg News and other reports said on Tuesday.

Citing three unnamed sources close to the matter, the Bloomberg report also said that of its 500 namesake book stores and 175 Waldenbooks stores, Borders will close about 150 of its locations.

Last week, Borders, which is the second-largest bookstore chain in the US after competitor Barnes & Noble, received $550 million in financing from General Electric Capital and announced it would put off payments to certain debtors in an attempt to stay afloat ahead of a potential bankruptcy filing.

Experts have pointed to Borders’ late adoption of electronic books and the bookstore chain’s reluctance to embrace technological changes as reasons for the company’s struggles.

Borders profits have plummeted 37 percent in the last three years, according to Reuters.

Borders Group Inc. stock (NYSE: BGP) shed more than a third of its value (26 cents) in Tuesday trading to close at 47 cents. Shares of bookstore chain juggernaut Barnes & Noble, Inc. (NYSE: BKS) rose $1.17 (7 percent) to finish at $16.92.