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Tuesday, July 19, 2011

Michigan based Borders Group announce liquidation plans, over 10K jobs lost nationwide

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Borders Group will liquidate all remaining
 stores in the next 30 days, costing over
10K jobs, nationwide
Borders Group based out of Ann Arbor, Michiganannounced plans July 18th, to liquidate all of their remaining store locations. This marks a dramatic year-long decline for the nation’s second largest bookstore chain after four decades in business.

Sadly, with liquidation comes a loss of jobs for soon-to-be former employees of the corporation. About 10,700 people still work for Borders, including about 400 at its Ann Arbor headquarters on Phoenix Drive, will add to state and national unemployment rolls.

The chain’s 399 remaining stores will be shuttered in short order, with liquidation sales starting, Friday, July 22nd. In a court filing on July 18th , Borders stated that is a possibly that about 30 leases could still be sold off to a buyer, saving a small number of employees jobs.

"It’s not news to me," Jim McTevia, a turnaround consultant with Bingham Farms-based McTevia & Associates said to Ann Arbor.com. "The handwriting was on the wall for this company two years ago."

Once one of larger employers within the Ann Arbor area, Borders headquarters housed 1,800 employees. For the region of Washtenaw County, which for years was insulated from the job losses of the automobile industry with its’ technical, medical and private industries; Borders liquidation is the biggest gut punch for the local economy since Pfizer announced its departure from Ann Arbor four years ago.

While acknowledging the fight Borders President Mike Edwards tried to perform to keep the company open, Edwards thanked soon-to-be out of a job employees and former customers for supporting Borders over the years.
“For decades, Borders stores have been destinations within our communities, places where people have sought knowledge, entertainment, and enlightenment and connected with others who share their passion," Edwards said in a statement. 
Everyone at Borders has helped millions of people discover new books, music, and movies, and we all take pride in the role Borders has played in our customers’ lives. I extend an heartfelt thanks to all of our dedicated employees and our loyal customers,” he cited.
Borders’ liquidation comes after the company filed for Chapter 11 bankruptcy protection on February 17th, with hopes of shedding unprofitable stores, cutting debt and re-emerging as a viable company. Instead, Borders has closed more than 230 stores since its initial bankruptcy filing and have continued to lose millions every month, leading to a forced ending of the U.S. second largest bookstore chain.

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