"Because of the ongoing impact of the difficult U.S. economy, coupled with the rapidly changing bookselling environment, we must restructure Borders and reposition our business for long-term success," Mary Davis, Borders Group Public Relations Manager, said. "We determined that the best path for Borders to have the ability to achieve this reorganization is through the Chapter 11 process, which we commenced Feb. 16."
The company said it plans to continue to maintain a strong national presence, calling its nationwide network of stores "foundational to the Borders brand."
The stores that are closing, which Borders said are "underperforming stores, include 36 in California. Besides the Pleasanton store in the Metro 580 shopping center, where the Kohl's and Wal-Mart stores are located, and the San Ramon bookstore in Bishop Ranch, other East Bay stores being closed are in Fremont and Union City.
Overall, more Borders stores in California will be closed than in any other state.
"It has become increasingly clear that in light of the environment of curtailed customer spending, our ongoing discussions with publishers and other vendor related parties, and the company's lack of liquidity, Borders Group does not have the capital resources it needs to be a viable competitor," Mikes Edwards, Borders Group president, said.
"This decisive action will give Borders the opportunity to achieve a proper infusion of capital in order to have the opportunity to have the time to reorganize in order to reposition itself to be a successful business for the long term," he added.
Sources said Borders was unable to compete with Amazon.com and e-readers.
Borders Group has retained DJM Realty to manage the disposition of its stores. For information on those closings, Borders suggested contacting Brook Horn at DJM for more information at (631) 752-1100.