Borders has been in financial trouble for years, and today the company finally filed for bankruptcy, The New York Times reports. The chain has $1.29 billion in debt and $1.27 billion in assets, and plans to close one third of its stores, or about 200 locations.
It now seems Borders may be the first major casualty of the e-book boom. Unlike Barnes & Noble, it didn't even start selling books online until 2008 and never developed its own ebook reader. Borders' bankruptcy has the entire industry worried about the future of brick and mortar bookstores, but executives say they're confident the company can bounce back. One plan involves putting more wine bars in stores. That may boost beverage sales, or it might just encourage people to loiter in the cafe, flipping though unpurchased magazines.