Borders Bookstore Co. or the Borders Group Inc. were forced to liquidate. The news went on air on Monday . Gordon Brothers from Boston , which is retail liquidator company is hired to settle Borders Group bankrupt accounts. The company has filed the petition under Chapter 11 of the bankruptcy protection act on 16 Feb.
Borders Group was incorporated by brothers Louis Borders and Tom Borders in 1971. Today Borders Inc is one of the top bookstore chains in US.The company will close till the end of September. Well the worst part is that around 11000 people will become jobless after the company closes.
One of the major reason behind the winding up of the company is that Borders Inc was not able to handle the stress being exerted by the fellow competitors.
A lot of firms are taking interest on the land left over by the company. Nearly 200,000 sq feet land is occupied by Borders Inc. .
“Following the best efforts of all parties, we are saddened by this development,” said Borders Group President Mike Edwards, in a statement.
Creditors of the firm are requesting to give them their respective shares as soon as possible. Some delay payments done by the Co. led to such an extent that some distributors stopped shipping to the company, one of them was Diamond Book Distributors.
“When you lose literally miles of bookshelves, it’s going to have an impact,” said David Young, chief executive of Lagardère SCA’s Hachette Book Group, which Borders owed $36.9 million at the time of its bankruptcy filing.
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