Borders Files For Chapter 11 Bankruptcy

And there goes the other shoe.

Today, Borders filed for Chapter 11 protection in New York.

Which means that the company can continue trading for now but can ignore any immediate claims on money owed.

This comes a month after Borders Group, which includes Borders and Waldenbooks, stated it may have to restructure under bankruptcy.

At Christmas, the company stated it owned assets worth $1,280,000,000 against a debt of $1,290,000,000. Technically it could shut up shop and pay everyone off – though the reality is never that simple.

I’ve spoken to a number of comic book publishrs who say they have been limiting their exposure to Borders, pulling back stock, semi-shipping orders to minimise returns, and trying to stay up to date with payments. But this is still going to be a major shock for many. Some publishers will just not survive.

Around a third of Borders stores will close in the next month…

About Rich Johnston

Chief writer and founder of Bleeding Cool. Father of two. Comic book clairvoyant. Political cartoonist.

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