Looking for a great deal?
Get ALL THREE of our new thank-you gifts when you donate $120.
This is a limited time offer – so act soon!
Jeremy Hobson: The Borders bookstore chain is going out of business. The company filed for bankruptcy last year and was supposed to be auctioned off to another company today. But Borders couldn’t attract any bidders. So it’s closing its doors and liquidating its assets to pay creditors.
Marketplace’s Jeff Tyler takes a look at the repercussions.
Jeff Tyler: You may think that the demise of Borders would be good for the industry leader, Barnes & Noble. In the long run, it probably is. But Morningstar analyst Peter Wahlstrom says:
Peter Wahlstrom: It certainly could be short-term pain as you take out the second largest competitor, who would be closing 400 stores.
He says consumers might temporarily abandon Amazon and Barnes & Noble as they chase fire-sale discounts at Borders.
What about the vacant 20,000 square foot superstores left behind? Some expect Borders’ real estate could be more attractive than its books. Faith Hope Consolo follows commercial real estate for Prudential Douglas Elliman.
Faith Hope Consolo: Many of Borders’ locations are very well-positioned.
She says several furniture and clothing stores are shopping for more space.
Consolo: Urban Outfitters has been on a massive expansion all over the country.
Perhaps the new tenants could hire the old bookstore workers — about 11,000 Borders employees could lose their jobs.
I’m Jeff Tyler for Marketplace.
If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air. But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.
Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.
When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.