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Borders Bankruptcy Move May Help E-book Sales

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Feb 13- Feb 21, 2011 Edition Borders Bankruptcy Move May Help E-book Sales

Borders Group, Inc is expected to file for bankruptcy within a few days, giving consumers fewer places to purchase books. The company plans to close about a third of its 674 physical stores as part of Chapter 11 restructuring.

The removal of books from towns, villages and malls will make it tougher to sell printed books, leaving consumers few options but to turn to e-books, some publishing insiders say.

Borders plans to get a bankruptcy loan and use court proceedings to slim down and remain viable in the marketplace. Initially, Borders plans to close about 200 stores, followed by another 50 or more later.

According to an item in The Wall Street Journal, Barnes & Noble also stands to benefit from the demise of Borders. BN stands to add more than $1 billion in sales if Borders is forced out of business.

Insiders say that avoiding liquidation could be a long-shot for Borders. Store closings may make it even more difficult for big publishers to break out new and relatively cheap, debut authors . Overall, Borders represents about 8% of sales for many publishers, but on certain titles, Borders could account for 20% of the market, a big number especially for smaller titles.