In February 2011 Borders, the second largest brick and mortar bookstore chain in the United States, headquartered in Ann Arbor, Michigan, filed chapter 11 bankruptcy. Borders' stock closed at 25 cents on February 12, 2011, reflecting expectations that the chain could be liquidated. The company was unable to compete adequately against Internet booksellers led by Amazon.com, or against the leading brick and mortar chain, Barnes and Noble. By September 18, 2011 Borders closed the last of its more than 1200 bookstores across the United States. This was reflective of a larger trend of brick and mortar bookstore closures, in which more than a thousand American bookstores closed between 2000 and 2007.
"Sales at Borders declined by double-digit percentage rates in 2008, 2009 and in each quarter in 2010 it has reported.
"Borders, which has 6,100 full time staff, operates 508 namesake superstores as well as a chain of smaller Waldenbooks stores.
"The company said it would close about 30 percent of its stores in the next several weeks and plans to continue to pay its employees.
"Borders' largest unsecured creditors include major publishers that provide the books it sells. Borders owes Pearson PLC's Penguin $41.2 million, Hachette Book Group USA $36.9 million, and CBS's Simon & Schuster $33.8 million, according to court documents.
"The case is In re: Borders Group Inc, U.S. Bankruptcy Court, Southern District of New York, No: 11-10614" (http://www.huffingtonpost.com/2011/02/16/borders-files-for-bankruptcy_n_823889.html?. accessed 11-16-2011).