Tuesday, July 5, 2011

Is the purchase of Borders by Direct Brands good news for the employees of the book retailer?

It depends who you're asking. According to the Economist (Goodbye to bricks and mortar) it doesn't look too good:

"Whatever happens at the auction will dictate the fate of the bookseller, which has already closed more than a third of its stores. Because Direct Brands is an online- and catalogue-based distributor of music, DVDs and books (such as the mail-order Book of the Month club), some speculate that a deal with Najafi will do little to keep the remaining bookstores open. Rather, the company will probably see value in the Borders distribution network and liquidate most everything else. Regardless, the story doesn’t look good for store employees and their dwindling patrons. (The company, which employs more than 11,000 people, has racked up more than $191m in losses since seeking bankruptcy protection in February, according to the Wall Street Journal.)"

What do you think? We'll be happy to read your comments.

For more news and updates on Borders post bankruptcy visit our website at http://www.ecolibris.net/borders.asp.

You can also find more resources on the future of bookstores on our website at www.ecolibris.net/bookstores_future.asp


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