Sunday, January 23, 2011

Borders on the Brink

Borders Books is running low on cash. According to this story by Jeanine Poggi in The Street, “Borders announced that it would also delay payments to some of its vendors, which prompted reports that publishers were halting shipments of books to the company. Borders has now spent the last several weeks meeting with publishing big wigs and presenting a plan to get back in their good graces.”

They also fell a little behind the technology curve. According to this story by Maria Panaritis in the Philadelphia Inquirer the national chain "hasn't made the move to digital as quickly as Barnes & Noble" did, said digital-book-publishing expert David Carnoy, executive editor at CNET in New York,”

In the exploding market of e-readers, Borders is playing third string. Amazon was first with the Kindle, followed by Barnes and Noble with the Nook and now Borders has the Kobo.

The Kobo?

Good luck with that.

Borders has already been closing stores in effort to help stem their losses but it still may not be enough to save the company. According to this story by Michael S. Rosenwald in The Washington Post “Whatever progress publishers and Borders make toward a temporary deal, analysts and industry observers say the larger problem is much more daunting: There are just too many big bookstores selling a product fewer and fewer people want, at least in printed form.”
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