NEW YORK – borders was slow to get the message as big-box retailer lost book, music and video sales on the Internet and other competition. The result: filed for bankruptcy Chapter 11 Wednesday and will close approximately one third of the shops.
Nimble less than rival Barnes & Noble, borders, now what analysts expect will be a quick solution to fight for the survival of the remaining stores. Is the latest warning tale about individual retailers risks when they fail to keep up with rapidly changing habits of technology and consumers.
"It's almost a case of hit-and-run," said Al Greco, marketing professor at Fordham University. "People crossing the street and not emphasize and trailer tractor (technology) hit. "
Outlines plans to close about 200 642 stores in the coming weeks, from San Francisco in Fort Lauderdale, Fla., aligns 6000 employees of company 19,500 jobs. The closures are also a blow to publishers who already owed tens of millions of dollars from the company, which stopped payment in December.
Borders said it loses approximately 2 million dollars a day with shops intending to close all the supermarkets. Furthermore, the company operates smaller Waldenbooks and borders Express stores.
Fifteen years ago supermarket dotted borders in the USA, and there seemed to be the future of circulars. Convenience stores, comfortable chairs, cafe and widespread discounts retail philosophy thumbnail "bigger is better" the end of many mom-and-pop bookstores that couldn't compete for option or value.
Americans today are more likely to pick up the latest best-sellers anywhere from Costco in Amazon.com, or download a digital version, than make an extra trip to a strip mall.
Analysts say a key error for the borders that began in 2001, contracted out the e-commerce business for Amazon.
"Amazon had no incentive to promote borders," said Simba information senior trade analyst Michael Norris. "Really marks the beginning of the end."
This relationship lasted until 2007. Since then, outlines lagged far behind Barnes & Noble, which began selling books online in 1997.
Borders also reacted with the increasing popularity of eBooks and ebook readers. After Amazon launched the popular Enkindle eBook reader in 2007, Barnes & Noble, followed by the corner of 2009 and have invested heavily online bookstore. Border entry of e-book with Canada Kobo Inc. last year, but failed to garner a lot of traction.
Also, borders do not react quickly enough retreat, music and DVD sales and hired four etc without selling books over five years experience.
Barnes & Noble, 29,8% on purchase of the book compared with percent 14.3 borders in accordance with IBIS world has been bringing e-commerce and e-books more quickly and maintaining stable management.
Norris said border problems mean that issuers must immediately reduce their estimates 2011 revenue from 1 to 10 percent. Paperback sales, a range of cells with borders that cultivated more than Barnes & Noble, may suffer greatly.
"I believe fall of borders will cause many issuers to realize can't be able to rely only on a few giant to sell their products, and the best retail partners will be those who have to sell books to design their next breath," Norris said.
If borders arising from bankruptcy protection, it won't be the first major retailer to do — Kmart completed successfully in 2002. However, more recently, credit tighter, retailers, including Circuit City Stores Inc. and flax use 'n things were forced to close.
"In the world today, people are bankrupt very short strings — GM took 90 days to emerge," said Scott Peltz, head of national corporate recovery practice advice McGladrey in Chicago. "This is not the kind of reform that could be achieved in short order."
Some think it will be tough border woes to resolve.
"Chapter 11 does not solve the problems of the company at all," said Jim McTevia, managing partner of the firm McTevia & Associates, turnaround in farms Mpingkcham, Mich. "should be a completely different company that went bankrupt, if they want to emerge successfully."
There was a long fall for Ann Ann Arbor, Mich, company, which helped pioneer the concept book superstore, together with the Barnes & Noble.
Tom and Louis borders opened its first warehouse in 1971, books sales used for Ann Ann. Developed at the time the brothers were mostly interested in offering other booksellers a system for the management of stocks.
But in 1973, the store moved to a larger location and shifted focus to sell new books and extension.
At the time, Waldenbooks, b. Dalton mall chains with short, 2000-square-foot stores and 20000 and 50000 titles, is growing rapidly.
The new supermarket, on the contrary, ran the 10,000 to 15,000 square feet and are offered between 100,000 to 200,000 titles and enticements to linger as chairs comfortable and attractive lighting.
Kmart Corp. saw its potential and gain contours in 1992, forming a unit book Waldenbooks. It then emerged booksellers as a separate company in 1995, the same year Amazon began to sell books online.
Falling sales resulted in a revolving door Keios. The current CEO borders, financier Bennett LeBow, came with the May 2010 after investing $ 25 million in the company, already looking like a bankruptcy a strong possibility.
Liquidation sales could begin as soon as this weekend, according to the documents submitted to the u.s. Bankruptcy Court in New York. The company will continue to honor the gift card and loyalty program.
Some are not, unfortunately, see space borders closing.
"They wiped out many mom-and-pop independent booksellers ... and now you're getting what they deserve, "said John King, the owner of the well-known used booksellers that carry the name of Detroit and Ferndale.
But for some shoppers, there were less shopping.
"It's just really sad to hear this," said Monika Barera, 50, shopping Wednesday, a downtown bordered with Ann Ann. The store is closing, but other four in Michigan. "I only can find a way through."
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Online:
http://www.bordersreorganization.com
Store closing list: http://bit.ly/i8H9rI
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Associated press writers 1 Italie in New York, David Runk in Ann Arbor, Mich, and white Ed in Detroit contributed to this story.
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