Borders on Verge of Bankruptcy -- Could Fire Thousands

Borders Bankruptcy It looks like brick and mortar book stores will be taking a giant step closer to extinction this month, as Borders is expected to declare bankruptcy, close up to 150 stores, and lay off thousands. Most of this is expected to happen before the end of February.

This is not the beginning of Borders' woes. One of the nation's largest book retailers suffered five rounds of layoffs in 2010, and just last month it lost five top executives, including its CIO and general counsel. The chain has already shuttered 200 stores, and it's also planning on releasing an additional 300 employees as it closes its distribution center in Tennessee.

Borders has given no indication of which stores will be closed as part of its Chapter 11 filing. It is generally known, however, that Borders has not been paying its vendors, causing problems for publishers, authors, and printers as well. Borders stock prices have slid below 50 cents as shareholders attempt to sell off their interest, facing the possibility that Chapter 11 reorganization could eliminate the stock's value completely.

Just last week Borders received a commitment for $550 million in credit from GE Capital, contingent upon restructuring. This means Borders has a chance of surviving, but on a much smaller scale.

Next: Read More About the Borders Bankruptcy


Filed under: Employment News
Lisa Johnson Mandell

Lisa Johnson Mandell

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Lisa Johnson Mandell is an award-winning multi-media journalist and author of Career Comeback--Repackage Yourself to Get the Job You Want.  Her work has been translated into 20 different languages, and she is a frequent expert guest and commentator on news and talk shows. She has been featured in The Wall St. Journal, on the CBS Early Show, NBC Today, CNBC, Fox Business News, Dr. Phil, Oprah.com and many other media outlets.  Lisa discusses her AOL pieces each week and interviews vital guests on the web TV show, This Week in Careers. Learn more on LisaJohnsonMandell.com.

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Jim

We also had better pass laws that prohibit "outsourcing". Mighty IBM and DELL have outsourced their tech support to India. That has added many to the unemployed rolls and just removed a path to success for our youth. We need to get a life and move our stuff back to the USA, screw the bottom line and making more billions for greedy Bill Gates. Remember Bill stole his ideas from his old employer and the mouse/windows idea from Apple. One has to be dishonest to succeed.

February 02 2011 at 8:28 PM Report abuse rate up rate down Reply
Sheila

My niece (13) and I have been going there twice a year for many years. It's our "thing." I give her a budget and she picks out what she wants. I use the library and Amazon a lot, but as a Border's member I get really good prices and get to browse the books and find things I didn't know existed. (Sorry to sound like a commercial.) Hope our Borders survives.

February 02 2011 at 6:45 PM Report abuse rate up rate down Reply
Phil

Looks like 'Border's' is doing a Circut City!!!

February 02 2011 at 6:31 PM Report abuse rate up rate down Reply
ohiorose

Obama will find those people jobs, or atleast keep them on government hand outs so they vote for him again.

February 02 2011 at 6:25 PM Report abuse rate up rate down Reply
annie

Where are the jobs, Mr. Weeper of the house????

February 02 2011 at 6:07 PM Report abuse rate up rate down Reply
Bob

Boy, Obama is really creating jobs. NOT !!!!!!!!!!!!!!!!!!!!!!!!!!

February 02 2011 at 5:44 PM Report abuse rate up rate down Reply
1 reply to Bob's comment
Toots

Obama didn't do this, technology did.

February 02 2011 at 6:54 PM Report abuse rate up rate down Reply
susie creamcheese

obama has spent todays youth into financial slavery...vote conservative

February 02 2011 at 5:32 PM Report abuse rate up rate down Reply
susie creamcheese

why will 1000's more lose their jobs?? because democrat policy is anti growth??? yup...thats why

February 02 2011 at 5:31 PM Report abuse rate up rate down Reply
1 reply to susie creamcheese's comment
Jim

Maybe cheney/bush saw WMD's and can send in the military and kill 4500 more Americans

February 02 2011 at 8:28 PM Report abuse rate up rate down Reply
teepee

Young folk will use electronic books...paper and pencil is on it's way out...end of story.

February 02 2011 at 5:20 PM Report abuse rate up rate down Reply
1 reply to teepee's comment
Tom

What will they do when the power for their "gadgets" comes to an end?

February 02 2011 at 5:41 PM Report abuse rate up rate down Reply
FRANKIE

I love how much better the economy is getting.

February 02 2011 at 5:07 PM Report abuse rate up rate down Reply

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