So news came out today that major book retailer Borders will not be able to reorganize as originally planned when it filed bankruptcy. The practical effect of this is that Borders, for all intents and purposes, will likely cease to exist after September 30, 2011.
The goal and hope when Borders filed for Chapter 11 bankruptcy protection was to figure out a way to pay creditors and allow the business to remain viable. As those plans have failed, Borders will basically sell all of its remaining assets to pay off its creditors. I previously posted a story about Borders and the impact of a major retailer filing for bankruptcy. The point I made then and will make again here is this: it is the average worker who loses here.
Borders, at present, still employs roughly 10,700 people in the remaining 399 stores. Now those people will be without work and may face personal bankruptcy of their own. Besides those actual employees of Borders losing out, people who did business with Borders, like those who sold them inventory, truck drivers, and other workers who serviced Borders stores will have less job security. When a retailer as large as Borders closes down it has a ripple effect through the industry. While we can analyze how this came about, we must not forget how this harms so many good, hard-working Americans like ourselves.