Who Wins, Who Loses When Borders Exits?
DETROIT (WWJ) - Analysts are busy assessing the potential winners and losers when Borders Group begins the process of going out of business.
The Ann Arbor-based bookseller, once the country’s second largest, is expected to ask a federal bankruptcy judge Thursday for permission to be sold to a liquidator that will close the company’s remaining 399 stores, including 13 in Michigan.
One obvious winner: Borders’ chief competitor, Barnes and Noble. One analyst expects it to pick up 10-15 percent of Borders’ annual revenue.
Another winner will likely be the fledgling but rapidly growing e-reader industry. Media analyst James McQuivey says e-book sales will nearly triple by 2015 and Borders’ demise will accelerate that increase.
Among the losers; shopping malls. Many of Borders’ outlets that will be going out of business are in malls or shopping centers.
Of course, the biggest losers of all will be the 10, 700 people who work at Borders, including about 400 at the company’s Ann Arbor headquarters campus.
(Copyright 2011 WWJ Newsradio 950. All Rights Reserved. The Associated Press Contributed To This Story.)