Borders Stores to Close by Late September
Borders says it plans to end its operations by the end of September.
The Ann Arbor-based company announced plans Monday to sell off its assets after not receiving any bids to stay in business. At its peak in 2003, Borders ran more than 1,200 stores, but by the time the company filed for bankruptcy protection in February, that number was cut in half.
Technology played a big role in the company's demise, according to Dilip Sarwate, a professor in business administration at the University of Illinois.
"It's certainly difficult to compete with the likes of Amazon," Sarwate said. "I'm not sure this could be completely avoided. Fewer and fewer people are visiting bookstores. They are going to their computers and buying books."
But Lisa Bayer, who is the marketing director for the University of Illinois Press, said while technology did play a role in Border's downfall, it could have been avoided. She said Borders simply was not prepared for the onslaught of digital reading devices.
"They didn't position themselves to take advantage of various changes," Bayer said. "Barnes and Noble has the NOOK. Amazon developed the Kindle. Borders did really nothing."
Borders did come out with an e-reader last year, known as a Kobo. Produced by an electronic company in Canada, the Kobo will still be available to people who use the software to purchase and read books.
Up until Monday, the University of Illinois Press was still doing business with Borders. Bayer said the publishing company has been distancing itself from the retail giant over the last five years for various reasons, including "very questionable" decisions by the company's management.
Bayer said the University of Illinois Press' involvement with Borders was so minimal that she does not think the bookstore's failure will have a huge impact on the publishing company.
"It's very likely they hadn't even ordered any of our books in a while," she said, noting that many of the University of Illinois Press' books are scholarly journals. "We're not as much of an interest to them as some other kinds of publishers."
Of the nearly 400 Borders bookstores slated to close, three are in Champaign, Mattoon and Peoria.
Mary Beth Nebel runs an independent retail bookstore in Peoria called "I Know You Like a Book." She said she does not think Border's demise is a sign that other retailers are destined to fail.
"I hate to see any bookstore close," she said, reflecting on Border's closure. "I think independent bookstore like I have is much different than a chain store. It's more of a community-based place. I think more people will enjoy that sort of atmosphere."
With Peoria's Borders expected to close and a Barnes and Noble still running, Nebel said she has no intention of changing the way she runs her five-year-old business.