Borders books files Chapter 11

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NEW YORK --- Borders was slow to get the message: The big-box retailer lost book, music and video sales to the Internet and other competition. The result is that it filed for Chapter 11 bankruptcy Wednesday and will close nearly a third of its stores.

Borders' problems mean that publishers will have to cut their 2011 revenue estimates immediately by 1 to 10 percent, said Simba Information senior trade analyst Michael Norris.   File/Associated Press
File/Associated Press
Borders' problems mean that publishers will have to cut their 2011 revenue estimates immediately by 1 to 10 percent, said Simba Information senior trade analyst Michael Norris.

Less nimble than rival Barnes & Noble, Borders 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.

"It's almost a case of hit-and-run," said Al Greco, a marketing professor at Fordham University. "They were crossing the street and they didn't pay attention, and that tractor-trailer (of technology) hit them."

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 its 19,500 employees their jobs. The closings are also a blow to publishers already owed tens of millions of dollars by the company, which stopped paying them in December.

Augusta's store in Augusta Exchange shopping center was not on the list of stores that will shut their doors. Five stores in Georgia -- in Atlanta, Austell, Buford, Kennesaw and Suwanee -- are set to close.

Borders said it is losing about $2 million a day at the superstores it plans to close.

Fifteen years ago, Borders superstores dotted the U.S. and seemed to be the future of bookselling. Its sprawling stores, comfortable chairs, cafe and widespread discounts epitomized the "bigger is better" retail philosophy that shut down many mom-and-pop bookstores.

Americans today are more likely to pick up the latest best-seller anywhere from Costco to Amazon.com, or download a digital version, than make an extra trip to a strip mall.

Analysts say a key error for Borders came in 2001, when it contracted out its e-commerce business to Amazon.

"Amazon had no incentive whatsoever to promote Borders," said Simba Information senior trade analyst Michael Norris. "It really marked the beginning of the end."

Borders also was slow to catch on to e-books. Amazon launched its Kindle e-book reader in 2007; Barnes & Noble followed with the Nook in 2009. Borders entered the electronic book market with Canada's Kobo Inc. last year.

Borders also didn't react quickly enough to declining music and DVD sales, and it hired four CEOs without book-selling experience in five years.

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AutumnLeaves
7010
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AutumnLeaves 02/16/11 - 06:28 pm
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Relieved to hear it will stay

Relieved to hear it will stay open.

countyman
19716
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countyman 02/16/11 - 06:37 pm
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The Augusta Exchange area is

The Augusta Exchange area is over 1 million sq. ft. of and draws people from all over... The area will become the first edge city in the Augusta market...

Once the Carmax area aka Wheeler Town Park and the Village at Riverwatch are completed in the future.. Augusta and Richmond County will be one of the best mid size cities in the united states for shopping, dining, and entertainment... The Augusta Mall, Carmax area, Village at Riverwatch, Augusta Exchange, and the Surrey Center will all be within 5 miles of each other.. Then we have the smaller developments like the 25 acre shopping center on Jimmie Dyess. Crane Creek under construction off Walton Way Ext/I-20 is zoned B-2. It probably will feature a mix of residential, retail, and office. The Flowing Wells Business Park going behind ADP will feature retail... Target, Chick Fil A, and Ruby Tuesday are coming to South Augusta sooner or later.. The Peach Orchard rd/I-520 interchange is the perfect spot...

storiesihaveread
358
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storiesihaveread 02/16/11 - 06:48 pm
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Yep completed like the area

Yep completed like the area around River Watch huh!!! Not, the next big area will be a boom for CC will be Lewiston Road at I-20. Hoping Bass Pro Shop will end up there. Perfect spot for them to open a store.

countyman
19716
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countyman 02/16/11 - 09:47 pm
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Electrical workers have been

Electrical workers have been working at the site. The first Costco location in Georgia outside of metro Atlanta will be here in the near future.... The Corporate at Costco picked the location because of the demographics and traffic surrounding Riverwatch pwky...

I'm not saying there isn't a very tiny chance of Bass Pro coming to Grovetown.. But if you take at look at the Bass Pro website it reads future location in Augusta and not Grovetown... 80% of Columbia County residents shop outside the county.. I think Grovetown has a better chance at landing the outlet mall. The outlet mall would be a great benefit to the area..

In the future the Grovetown exit, Thomson main ext, and North Augusta's exit 5 will all have bigger retail developments.. The traffic counts and the demographics can't really compare to Riverwatch Pkwy and the Carmax area in 2011.. Riverwatch Pkwy is near Washington rd, I-20, the $10 million Alexander Drive construction, Stevens Creek, Fury Ferry, and Claussen rd.. The Carmax area is near I-20, I-520, Wheeler road, Flowing Wells, and Scott Nixon Memorial Drive..

Dixieman
14355
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Dixieman 02/16/11 - 10:07 pm
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Very relieved. I have been

Very relieved. I have been holding my breath. It is a great store, good selection and prices, and very nice people work there -- I was worried about their jobs. Now I just hope the company itself survives....

cristinadh
6
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cristinadh 02/16/11 - 11:06 pm
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I used to go to Barnes and

I used to go to Barnes and Nobles but ever since they went to the mall I don't go there anymore.. I started going to Borders because they are accessible and better and they have better service than Barnes and Nobles..

terminusmundi
6
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terminusmundi 02/17/11 - 04:39 pm
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Borders's outsourcing of its

Borders's outsourcing of its online shop to Amazon was a colossal mistake. But hopefully they can refocus on their core business. I still won't be going there, however, because I have a Kindle.

Well, I might still go. But not to buy books.

Dixieman
14355
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Dixieman 02/17/11 - 06:40 pm
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I have a Kindle too but go to

I have a Kindle too but go to Borders and B&N for books, magazines, coffee, misc. stuff. Both have good service and nice atmospheres.

corgimom
31086
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corgimom 02/17/11 - 11:43 pm
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".... The Corporate at Costco

".... The Corporate at Costco picked the location because of the demographics and traffic surrounding Riverwatch pwky..."

That is absolutely true. Costco's niche is blue-collar workers and lower-income customers, and that describes Augusta. Augusta has always skewed blue-collar.

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