Borders Group Inc. filed for Chapter 11 bankruptcy protection this week and announced that it would close about 200 of its 674 Borders and Waldenbrook stores.
In its filing, Borders listed $1.28 billion in assets and $1.29 billion in debts.
The selected underperforming stores are set to close by the end of April, and sales at those stores could occur as soon as this weekend.
On the Central Coast, the Oxnard Borders store will close, but the popular Borders bookstore in Goleta’s Camino Real Marketplace will remain open.
“The Goleta store does really well for Borders,” said Mark Ingalls, property manager for Camino Real Marketplace. “The closing of the Santa Barbara Borders should only help the Goleta store.”
The recent closing of the Santa Barbara Borders and Barnes and Noble are signs of the times. Book sales have fallen in recent years, with many people turning to online and electronic books.
Amazon sells more electronic books on its Kindle than hardcover or paperback books, and Barnes and Noble’s e-reader the Nook is one of the fastest-growing parts of the bookstore’s business.
Borders offered the Kobo, Velocity Micro Cruz and Franklin AnyBook from other companies, neither of which has garnered the popularity of readers such as the Kindle, Nook and iPad.
“I think there will probably be additional closings as part of Borders’ workout plan, but I don’t think Goleta is one that they’ve identified because it’s performed well for them,” Ingalls said. “That’s not to say that Borders’ business model or square footage won’t change in the markets they keep open, but we haven’t been made aware of changes in the Goleta store. The Camino Real Marketplace Borders store continues to be well patronized, and we think it’s a good fit for Goleta.”
“We will focus on enhancing our Borders Rewards Plus program, improve technology to enhance the shopping experience on Borders.com and introduce additional non book product (in-stores) that complement our vast book offerings among other initiatives,” Mary Davis, corporate spokesperson for Borders, told Noozhawk in an email.
— Noozhawk business writer Taylor Orr can be reached at torr@noozhawk.com. Follow Noozhawk on Twitter: @NoozhawkBiz, @noozhawk or @NoozhawkNews. Become a fan of Noozhawk on Facebook.