Borders Group, an Ann Arbor, Mich.-based bookstore owner, filed for Chapter 11 bankruptcy protection Feb. 16, citing a challenging economy and a changing retail environment for books and related products, according to the company's website. Borders will close about 200 stores nationwide.
According to the Association of American Publishers, in 2009, U.S. book sales were $23.9 billion. That illustrates a 1.8 percent decline from the $24.3 billion book sales in 2008. E-book sales reached $313 million in 2009, an increase of 176.6 percent over 2008.
“The book industry is changing extremely rapidly,” said Greg Charleston, an Atlanta-based turnaround expert and senior managing director at Conway MacKenzie. “It is very similar to what happened to music retail stores about five years ago. The bookstore market was already overbuilt. Now electronic books are coming on very strong. In my opinion, bookstores will continue to close over the next few years until there are very few left.”
