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E-Books Closing in: Borders Files For Chapter 11 Bankruptcy Protection

We are going to go out on a limb here to tie this story to tech relevance. Here’s how: Borders sells Kobo’s, e-book readers which have an Android app. Their biggest competitor, Barnes & Noble, sells the Nook Color fully functional Android tablet once rooted, e-book reader. So here goes:

Border’s CEO Mike Edwards sent out an email a few minutes ago that announced to Border’s rewards members that they filed for Chapter 11 bankruptcy protection on Wednesday. Borders has struggled after over expansion and a deal to purchase mall retail chains B.Dalton and Walden Books, never went in the right direction.  Borders has also struggled with getting up to speed in the e-book space.

Read more including Mike Edwards letter after the break:

Both the Amazon Kindle and the Android powered Barnes & Noble Nook and Nook Color, have slowly eaten away at even their own hard cover book business, much less Borders.  We knew this day was around the corner when we saw liquidators selling out the last of one of Atlanta’s flagship Border’s locations in the affluent Buckhead superb last Wednesday.

Edwards told reward members

“…because of the ongoing impact of the difficult US economy, coupled with the rapidly changing book selling environment, we must restructure Borders and reposition our business for long term success…”

Borders filed for Chapter 11 bankruptcy protection which gives them time without the pressure of creditors closing in to file an acceptable restructuring plan with the bankruptcy court. In the meantime the stores that haven’t already begun a closing down process are still open as are their websites and e-reading portals. But you may want to rethink that Kobo purchase…

Here is the entire letter:

Source: Borders

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