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January 22, 2011 • Gear Bits

GD Quickie: Borders Appears on ’10 Most Likely to Disappear in 2011′ List

Carly Z has written quite a bit about ailing Borders, including a recent look at why Barnes & Noble shouldn’t buy them. Turns out she was prophetic, as a DailyFinance article today listed them as one of the 10 most likely companies to disappear in 2011. Here are their thoughts:

The large bookstore chain is almost gone already. The only question remaining is whether it will be dissolved or sold to a related retailer like Barnes & Noble. It appears Borders has little choice other than to go bankrupt, given its debt and cash-flow situation. Two ominous signs for the bookseller: It says it’s unable to pay some of its largest publishers for their books.

Border’s stock also dropped under $1 a share, a warning sign that the shares could eventually be delisted — that is, if Borders lasts long enough. The company’s 500 locations may have value to a buyer, but its name does not, being associated with little more than failure.

So unless Barnes & Noble can get a really sweet deal on the assets, particularly the locations, there is little reason for them to buy Borders before they end up in liquidation later this year. Pretty much like Carly said!

Source: DailyFinance via Consumerist

4 Responses to " GD Quickie: Borders Appears on ’10 Most Likely to Disappear in 2011′ List "

  1. dbmurray says:

    Amazon is always wanting to stick it to Barnes & Noble. Don’t be surprised if they make a move to get into the physical bookstore business. They could always use the locations as mini-warehouses for quick shipments of online orders to local customers.

  2. AlexaAlexa says:

    RT @GearDiarySite: GD Quickie: Borders Appears on ’10 Most Likely to Disappear in 2011? List http://goo.gl/fb/0kJF8

  3. shreyas kini says:

    GD Quickie: Borders Appears on ’10 Most Likely to Disappear in 2011? List: Carly Z has written quite a bit about… http://bit.ly/exGqpO

  4. […] reported that Borders landed on a “Likely to Disappear” list, but that’s not the first […]