Borders, Gannett Latest Victims of Digital Media
The shuttering of Borders bookstores has been a long time coming, the latest casualty in the switch to digital media. Yesterday (7/18), the nation’s second-largest bookstore chain, which also sold music, announced plans to begin the liquidation process.
The company had been seeking buy-out offers in recent months, but nothing came to fruition. Now it will liquidate its remaining 399 stores. Clearance sales could start as early as Friday (7/22), with the chain expected to be closed by September. Borders’ Nashville location is already closed.
Borders President Mike Edwards said in a statement, “We were all working hard toward a different outcome, but the head winds we have been facing for quite some time, including the rapidly changing book industry, [electronic reader] revolution and turbulent economy, have brought us to where we are now.”
More from the Wall Street Journal.
Borders isn’t the only one suffering as a result of the digital migration. Gannett Co., which owns 82 newspapers including The Tennessean and USA Today, has released a dismal second-quarter earnings report. This follows the recent lay-offs that hit the Nashville newspaper as part of a nationwide loss of 700 jobs.
According to the Q2 report, profits decreased 22%, coming in at $151.5 million, from $195.5 million, a year earlier.
Publishing revenue, including advertising and circulation, declined 4.9% to $977.1 million.
As with music sales, digital revenue was on the rise, up 13%. More from AdAge.
As digital continues to stamp out print, Google revealed record-setting revenues last week. The company’s second-quarter revenue rose 32% year-to-year, coming in at a company record of $9.03 billion.