The company attempted reorganization when it filed under Chapter 11 in February but said it has been unable to find an investor. It initially planned to close more than 230 of its stores, but now will close the remaining 399 that employed 10,700 workers.
Borders will begin closing its remaining stores as soon as Friday, and the liquidation is expected to run through September.
“Following the best efforts of all parties, we are saddened by this development,” Borders Group President Mike Edwards said in a statement. “We were all working hard towards a different outcome, but the headwinds we have been facing for quite some time, including the rapidly changing book industry, eReader revolution and turbulent economy, have brought us to where we are now.”
The Borders at 900 State St. in Santa Barbara was on the original Reorganization Closure List issued in February, and the bookstore at the Camino Real Marketplace in Goleta was part of the 30-plus additional stores announced to close in March. The selected underperforming stores closed by the end of May.
South Coast readers have fewer local resources to satisfy their literary needs. The Barnes & Noble at 829 State St. was replaced by retailer H&M in June. Readers can still turn to Chaucer’s Books, The Book Den, Lost Horizon Bookstore and Thrasher Books in downtown Santa Barbara.
Many people have turned to online and electronic books. Amazon sells more electronic books on its Kindle than hardcover or paperback books, and Barnes & Noble’s e-reader the Nook is the fastest-growing portion of its business.
Borders will proceed with a liquidation plan to be presented to the federal judge overseeing its bankruptcy case on Thursday.