Major national bookseller could face bankruptcy
Borders, one of the nation's largest booksellers, started the new year by announcing it would delay payments to publishers, stoking fears in the industry that the chain could soon file for bankruptcy.
Borders, one of the nation's largest booksellers, started the new year by announcing it would delay payments to publishers, stoking fears in the industry that the chain could soon file for bankruptcy.
This week, the company said most of its high-level officials would be meeting in New York to discuss its future financial well-being.
"We value our relationships with them, which is why we're engaging in discussions with them," Mary Davis, a Borders spokeswoman, told The New York Times. "We're committed to working with our vendors as part of our overall effort to refinance."
If the bookseller were forced to conduct a Chapter 7 filing - or liquidation process - experts say publishers could lose millions in revenue as well as one of the major ways to get books into the hands of the public, the news source says. Nationally, the chain has more than 650 stores.
In addition, booksellers across the country are facing a crisis similar to the one recently experienced by the video rental industry. With declines in revenues due to the rising popularity of e-books, many say traditional brick-and-mortar stores will likely shrink in number in the coming years.
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