It's no secret that Internet book sales and the advent of digital books on dedicated readers like the Amazon Kindle has eaten into the business of book chains such as Borders. Now, it appears that Borders may have reached the final chapter in the tale of its corporate existence, and anyone holding a Borders gift card would be well advised to use it before the company goes belly up.
For the second month in a row, Borders is "delaying" paying its vendors and landlords its monthly debts, to conserve cash. It claims to be working to make new financing arrangements, which includes having publishers accept new terms that they would be highly unlikely to accept. The likely next step? Chapter 11 bankruptcy filing or even a full liquidation of the corporation.
In that eventuality, if you are caught holding an unused Borders gift card, you will likely be left holding the bag.