RIP: Borders to Liquidate, A Walk Down Memory Lane
We tweeted about the impending doom for Borders last week. At the time only one question remained: Which liquidate company will get to cannibalize the assets? It was pretty clear that the bankruptcy courts were favoring liquidators. It was also unlikely that a deep pocketed investor or group of investors would step up to rehabilitate the company.
The vultures circled overhead and today Hilco Merchant Resources and Gordon Brothers Group ended up with the scraps. A group of investors was not able to sway the bankruptcy court that they would not be able to also avoid liquidating the chain.
Instead the court opted to just liquidate the assets.
In the wake of the damage there will be hundreds of stores closed, and tens of thousands of jobs lost. So how did this unfold? The bankruptcy, and subsequent liquidation of Borders Group was not sudden by any means.
History Lesson of the Bankruptcy of Borders Group
March 2008
After second straight loss of $150 million the Borders Group announces it will consider putting itself up for sale.
May 28, 2008
Borders announces plans to trim $120 million in expenses. It started at the top laying off 5 vice-presidents and 3 directors.
March 5, 2009
Borders cuts 742 jobs across the company.
January 30, 2010
Borders Group annual report states that the employee count is
8,500 full-time employees
12,100 part-time employees worldwide
December 30, 2010
Borders Group the parent company of the Borders book stores and Waldenbooks confirmed that they have delayed payments to vendors to avoid a liquidity crises. A sure sign that a bankruptcy filing is very possible in the near future.
January 13, 2011
Borders announces it will close its Tennessee distribution facility and result in the elimination of 310 jobs.
January 14, 2011
Borders secures a bankruptcy firm and looks to get a $500 million credit line.
January 17, 2011
Borders lays off 45 corporate employees from its headquarters.
February 16, 2011
Borders Group files for Chapter 11 bankruptcy protection, announces it will close 200 stores.
February 26, 2011
Borders Group officially entered Bankruptcy it declared that it would close at least 30% of its outstanding locations. In just over one year from its last employee count number the number of employees are now:
Borders had 642 stores in February when it entered bankruptcy protection.
July 18, 2011
Borders officially was granted the option to sell itself to a major liquidators Hilco Merchant Resources and Gordon Brothers Group.
The 405 remaining stores will liquidate.
The grand total jobs lost in the liquidation will be 11,000. If counted from a year prior a total of 20,600 part-time and full-time jobs will be completely lost.