The New York Times reports that Borders has called off tomorrow’s auction and will move forward with submitting the liquidation plan it has worked out with Hilco and the Gordon Brothers Group. If the federal judge approves the plan on Thursday as expected, the company will start closing stores this Friday, and continue liquidation through September. Borders has 399 stores still open, and employees 10,700 people.
The Times also points out that Borders’ death may have ripple effects in the publishing industry:
Publishers said with Borders gone, they would plan for smaller print runs and shipments. Employees at major publishing houses worried that layoffs could be imminent, as many companies have dedicated staff members that work only with Borders.
The closing could have a particular impact in paperback sales. Borders was known as a retailer that took special care in selling paperbacks, and its promotion of certain titles could boost them to best-seller status.
On the plus side, if you’re a consumer who loves books, you might find some deals at your nearest Borders over the next few weeks.
“Calling Off Auction, Borders Plans to Liquidate” [New York Times]
(Photo: The Ewan)