Leading book store chains in the United States, Borders Group, went bankrupt. Founded in 1971, the Borders are not able to bear the debt of more than U.S. $ 1 billion and failed to anticipate the rapid changes of consumer tastes, which is now prefer electronic book or e-book and make a reservation over the Internet.
According to The Washington Post, Borders filed bankruptcy protection (Chapter 11) to the court, Wednesday, February 16, 2011 local time. In addition, companies based in the state of Michigan it would close 30 percent of the total number of characters they have, which is more than 600 units. Thousands of staff was hit by sacking.
The Christian Science Monitor daily express, Borders has a large debt to a number of publishers. They include Penguin Putnam (U.S. $ 41.1 million), Hachette Book Group (U.S. $ 36.9 million), Simon & Schuster (U.S. $ 33.8 million), and Random House (U.S. $ 33.5 million).
According to page AnnArbor.com, Borders has assets of U.S. $ 1.275 billion, but has a debt of U.S. $ 1.293 billion.
"This is the biggest bankruptcy in history books business," said Albert Greco, an observer from The Institute for Publishing Research. "This is really a stressful day," said Greco, who quoted the Washington Post.
The small-scale competitor Borders also participated restless. "This is not something to be celebrated," said Daniel Goldin, the owner of Boswell Book bookstore in Milwaukee as quoted by The Christian Science Monitor.
"I am worried about the future of book publishing. With one less competitor, they will make increasingly powerful retailers Amazon," said Goldin refers to a company selling various products through the Internet, Amazon.
Showing posts with label book store. Show all posts
Showing posts with label book store. Show all posts