According to ConsumerAffairs.com:
Shares of Borders fell to below $1 after it announced that it couldn't afford to pay publishers for their books at this time and would have to delay payment.[...]
That news followed an earlier report in which Borders said a third party had lowered the value of its inventory in the event it had to sell the company or go out of business. That hurt Borders' ability to borrow and forced it into talks with senior credit facilities to refinance its debt.
Barnes and Noble, which even put itself up for sale, so far hasn't attracted any buyers other than possibly Borders. But then that would appear to be like the Hindenburg buying the Titanic.Read the whole article for an interesting take on the situation that both bookstore chains find themselves in today. It appears that both chains are going to have to start liquidating some real estate holdings and closing down stores because of the rate at which in-store sales continue to drop.
Meanwhile both Borders and Barnes and Noble are closing stores. Borders is scheduled to close its downtown Portland store on January 7. The rest of the chain could be right behind.
I can't bring myself to take this as lightly as the article's writer seems to take it in his closing comments:
Studies show people with e-readers are reading more than they did before. I know that's true among the people I know who have them, and they love their iPads, Kindles and Nooks. Still, it's a little sad to see bookstores close, even though I never go there anymore.Those of us who continue to believe that e-books are a poor substitute for the real thing are losing ground every day. We are going to have to adapt to the new reality of the world of book-selling whether we want to or not.
I guess I just like to see them there when I drove by.
(For those who might think I have my head in the sand when it comes to e-book readers, I will add that I have owned a Sony Reader for several years and that my iPad is loaded with software from Kindle, Nook, iBooks, and several other e-book publishers. 10 of the 125 books I read in 2010 were e-books and I do appreciate the convenience factor of reading that way - but e-books remain a poor substitute for reading from a physical book.)