Borders’ failure to reach an agreement with creditors has resulted in the announcement that the chain will file for Chapter 11 and nationally 200 of its 642 stores are being closed. Unfortunately, the Evanston and the Chicago store on Lincoln Ave are included on the list. Keep an eye out for clearance sales which may begin this weekend. (This article explains which Illinois stores will remain open.)
A recent update on the status of Borders‘ finances reflects an uncertain future. Despite the massive loan obtained several days ago (and noted here) from GE, the chain may be headed toward bankruptcy. Let’s hope that doesn’t happen.
On the bright side I found an article about a small independent store in NY that is growing its business enough to expand physically. The owner, Suzanna Hermans, thinks that personal service plus the sense of community offered by Oblong Books will ensure her store’s longevity.
(Isn’t that what people say about libraries?)
Borders has received a reprieve from its financial woes. GE has arranged over a 1/2 billion dollar loan with many conditions attached in order for the chain to reorganize its debt. Stock shares immediately rose.
It seems that bookstores are joining the pattern of businesses who temporarily open small shops in malls for the holiday season. Borders will be doing just that after closing hundreds of regular stores recently. Look for stores to open where an outlet has closed.