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Borders to file Chapter 11

February 17th, 2011: Allan Sugarbaker says...
Borders to file Chapter 11

The Borders bookstore chain has begun the process of filing for Chapter 11 bankruptcy protection after several years of disappointing sales. This isn’t so surprising when you look at the company’s serious failure to adjust to trends of internet book buying and digital e-readers in a timely fashion. Barnes & Noble, the largest bookstore chain in the United States, saw the digital writing on the wall, and after a big marketing push last year, finally managed to get some traction with its Nook e-reader device. Barnes & Noble also embraced web sales years before Borders. According to a Wall Street Journal article, Borders made a fateful deal in 2001 that transferred its internet sales to Amazon.com (now one of its biggest competitors), a decision Borders took far too long to rectify. Over the next several weeks, Borders will begin closing nearly 30 percent of its more than 500 stores. So, if you tend to get your gaming gear at a Borders store, watch for liquidation sales, and maybe keep an eye out for a new venue.

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