Business & Tech

Reports: Borders May File for Bankruptcy in February

Several sources have come out claiming that the second-largest book chain in the country is in financial trouble and could file for Chapter 11 this month.

Borders Group Inc., which operates a total of 511 Borders Books & Music stores with one in , may file for bankruptcy sometime in February, according to multiple reports. 

The book chain is also looking to close at least 150 stores, according to a separate report by Bloomberg. 

One loyal Borders shopper at the Syosset location was not too happy to hear about the possibility of losing her favorite store. 

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"I would be fairly upset if that happened - I do about 90 percent of my shopping here," said Anne Bernberg as she was shopping for magazines Friday. 

Bernberg said she prefers Borders over Barnes & Noble - Borders main competitor -  for several reasons. 

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"The Borders card here is free - at Barnes & Noble you have to pay," Bernberg said. "The atmosphere here is also great, every one is just so helpful. It's better to come in here than to shop online because of that personal touch."

Employee's at Borders declined to comment. 

Shares of Borders Group Inc. common stock (NYSE: BGP) were trading at 39 cents as of Friday afternoon, down from 85 cents on January 28. The stock reached a two-year high on June 1, 2009 when it reached $4.34 a share. 

For the 3Q of 2010, Borders posted total revenue of $470 million, down from a 2Q total of $526 million. But the company also had a total operating expense of $547 million in 3Q and $568 million in 2Q - totaling losses of $71 million in the 3Q (-1.03 EPS) and $37.7 million in the 2Q (-.68), according to the Reuters Investment Profile Report. 

Shares of Barnes & Noble were up 59 cents in afternoon trading Friday, at $16.67 a share. 


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