News: Borders Locations Set to Close on LI
(Long Island, N.Y.) Borders Group Incorporated, the Michigan bookstore chain, announced this afternoon that it will be closing five Long Island stores. This came after the plan to sell remaining pieces of the company were unsuccessful. The ultimate cause came from the recent downturn in the economy.
In the years since 2008 all types of businesses, from Blockbuster to Payless, have been hit hard with economic decline. Stores like Circuit City have sold items in their stores below bulk prices to liquidate the assets as fast as possible. Bank of America expressed plans to shrink their storefronts by over 10%.
The Borders chain could begin to liquidate what is left of the company as early as the end of this week. Reports stated that it will continue in the following months and be completed by the beginning of the fall season. It is possible for a few stores to remain open, but sources have stated that it is very unlikely.
The stores that will be immediately affected and closed are shown on the Boarders website. Those locations included Bohemia, Farmingdale, Stony Brook, Syosset and Valley Stream. Other locations were closed in the beginning of this year due to the company-wide bankruptcy filing.
Many believe that this is a clear sign that the economy is not as healthy as some have estimated. The market is not set to rebound as many sources have stated when referring to economic recovery. Some believe the downturn may just be a shift in the way we are doing things. They have predicted that we will live in a more digital world as we enter a paperless culture.
The president of Borders also commented on the pace of change affecting the publishing industry. He spoke about issues such as the shrinkage of computer technology driving the consumer to utilize a new medium for enjoying books. This will be coupled with the economy’s current state as the catalyst for the rapid change.
Experts believe that the number of new openings in U.S. businesses for the 2011 season will outnumber the closings. Reports stated that Borders currently employs an estimated nineteen-thousand workers. On July 7th, 2010 Borders introduced an e-Book system allowing customers to read books on their computer screens.
The disappointing news does yield one positive note for book lovers. Store closing sales allow customers to purchase books at half the price. Those interested should keep updated on the company’s website for further announcements.