Borders Group Inc., one of the largest bookstores in the Unites States has already filed for bankruptcy according to several news reports on Wednesday. The filing for bankruptcy protection by Borders was attributed to the steady decline of sales in the past couple of years. The declining sales hurt the company especially with managing its outstanding debts.
The filing for bankruptcy by Border Group Inc. will cause the closure of almost one-third of its retail stores across the country.
As of December 25 of last year, Borders has listed its liabilities to be around $1.29 billion while its assets stand at $1.28 billion.
Borders Group President Mike Edward said that the company “does not have the capital resources it needs to be a viable competitor." Reports said that the steep popularity of online and digital books made mostly affected the steady decline in sales of the book store chain over the years.
Early this year, the company had already hinted of its filing for bankruptcy if could not meet its financial needs and could not find any new source of capital for the company.
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