Borders files for bankruptcy

Daily Staff

Borders CEO Mike Edwards blamed Borders’ bankruptcy on the rough economy and the “changing bookselling environment.”

The national bookstore chain filed for bankruptcy Wednesday after weeks of speculation.

Edwards made it clear that Borders would not go out of business, though 30 percent of its stores will have to close. This percentage may rise.

“We must restructure Borders and reposition our business for long-term success,” Edwards said in an e-mail message to Borders Rewards members. “We determined that the best path for Borders to have the ability to achieve the reorganization is through the Chapter 11 [bankruptcy] process.”

Borders received $550 million from a group of investors led by GE Capital to restructure the business, but it may not be enough to battle the “changing bookselling environment.”

This refers to offering books for a lower price than Borders and other national chains and eBooks being available for much less online.

Many Borders stores will continue to operate as usual, with author signings and readings, book clubs and kids’ storytimes and parties.

At this time, the Ames location is not included in the list of stores that must close. is operating as usual as well.

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