U.S. book retail chain Borders has announced it will be shutting down its remaining stores after a deal with Najafi Cos. fell apart last week. Its remaining 399 stores will be liquidated, with nearly 11,000 employees out of jobs.
Borders was founded in Ann Arbor, Michigan in 1971 and has grown to become one of the leading chains in the U.S. At its height, Borders had over 1,000 stores but in the last decade, competition from online retailers has caused its fortune to decline. The company filed for Chapter 11 bankruptcy protection in February this year.
Najafi Cos. approached Borders in an effort to keep some of the stores open, but declined to place a bid when asked to abandon its option to liquidate the stores.
Borders also holds 11 percent of the Toronto-based Kobo eBook initiative and Kobo has been asked to have right of first refusal when that holding is sold.