In Audit class today, we talked about “going concern.” I love books. I don’t often get to read for fun (because I often choose TV before books) but I absolutely absolutely love collecting books. My professor worked for Borders in its final year – and he always tells great stories about his experiences. Though I didn’t mind much that Borders went out of business, I will be bothered if Barnes & Noble goes out of business, too. I love a good, humongous bookstore I can get lost in. I haven’t budgeted any money to just walk into a bookstore and go nuts – BUT I WANT TO DO THAT AGAIN. AND AGAIN. AND AGAIN. I love going to a big bookstore and spending $60-$100 on books. I really hope my only midwestern bookstore doesn’t go out of business…
Why Borders failed
- Borders had a ton of debt
- Barnes & Noble had none
- Borders thought online shopping wouldn’t take off – outsourced to Amazon
- Barnes & Noble has their own website
- Borders bought back a ton of stock, which inflated the stock price for a little while, but took away cash from the business that they should’ve used to invest in information technologies TO MAKE A WEBSITE
Barnes & Noble’s on the way out too, he’s guessing.
He thinks we’re going to move back to specialty bookstores – not big chains with minimum wage high schooler employees, but little stores with people who really know books. We’ll have Amazon for the rest of all book demand.
In 2011, Borders said they can’t pay their vendors. These suppliers only have 4 retain buyers… what did this mean for those suppliers?