February 16, 2011 by USA Post
Borders Bankruptcy, (CNN) – Borders Group has filed for Chapter 11 bankruptcy and plans to close about 200 of its stores and reduce its staff, a retailer in the nation’s second book, said Wednesday. “It has become increasingly clear that, given the environment of customer spending limits, our ongoing discussions with publishers and other vendor parts thereof, and the lack of liquidity of the company , Borders Group has the financial resources it needs to be a viable competitor, “the company said in a statement. As we do close our stores, ultimately there will be staff reductions, “said spokesman Donald Cutler borders. But he did not say how many workers would lose their jobs.
Borders ranks just behind Barnes & Noble (BKS, Fortune 500) in the chains of the nation’s bookstores. It currently has 659 stores and employs nearly 20,000 workers, including 5,842 full-time employees, both regular and temporary employees and 13,661 part-time, “said Cutler.
The bankruptcy filing by borders is a sign of change in technology and business model that shook the industry to sell books, “said G. Logan Jordan, associate dean at Purdue University Krannert School of Management. The booksellers have faced three major waves of change, “said Jordan. ”The first wave was the power that came from the Internet, allowing online purchases and orders,” he said. . The second wave was the power of data systems and customer relationship management to anticipate trends and interests and promote the good books at the right time to the right customer is now the third wave -. The e-book or electronic ”
Jordan says that these changes in technology have changed the cascading behavior of buyers and reduces the value of distribution assets established brick and mortar stores such as Borders wants to close.
Borders Group Inc. said it will close five stores Indiana after the bankruptcy filing. The bookseller said it will close 30 percent of its sites across the country. Purdue University Krannert School of Management Dean G. Jordan Logan said the filing is a sign of the ASA model changes in technology and business that have shaken the traditional industry of the library.
Source: Purdue University, Borders Group Inc.
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