Bookseller Borders Group to liquidate, eliminating over 10,000 jobs
By Shannon Jones
20 July 2011
In the latest sign of a worsening jobs crisis, Borders Group and Cisco Systems announced huge new job cuts this week. Borders, the second largest book-selling chain in the United States, said Monday that it has abandoned attempts to find a buyer and plans to liquidate its remaining 399 stores beginning Friday, at a cost of 10,700 jobs.
Michigan-based Borders filed for bankruptcy in February and closed about one-third of its 650 stores. Since that time it has continued to lose money and has had difficulty convincing publishers to ship books on normal terms, with many insisting on immediate payment.
Borders had hoped to sell its assets to the Arizona buyout firm Najafi Companies, owner of the Book-of-the-Month-Club. However, Borders creditors objected to the terms of the sale. Borders had set a Sunday deadline to find a new buyer. The company will present its plan for liquidation to a bankruptcy judge on Thursday.