- Bloomberg News
Borders Group filed for bankruptcy protection this morning, marking a sad milestone for the book retailer and a blow to employees, stock holders, book publishers… and the already battered commercial property business.
At least two big shopping mall owners — Simon Group and General Growth Properties, which itself just emerged from bankruptcy protection –- have requested to appear in the Borders bankruptcy case, in order to represent their interests. (A reader points out that another real estate company, Agree Realty, has said about 27% of its annualized base rent comes from Borders Group.)
General Growth also disclosed in a court filing that it is a landlord for three dozen Borders-owned stores, or more than 5% of the company’s total store count. Borders said it plans to close about 30% of its store network, though it hasn’t yet disclosed which ones.
The bankruptcy process allows companies to break their onerous store leases, which have been a particular problem for Borders. The company’s lengthy leases has hamstrung the unprofitable book retailer. But while breaking leases is great for Borders, the moves also will be a big headache for the landlords.
General Growth disclosed a list of stores for which Borders is a tenant. Here it is.
| Property | Tenant Name |
| Alderwood | Borders Books & Music |
| Bayshore Mall | Borders Books & Music |
| Boise Towne Square | Borders Books & Music |
| Chapel Hills Mall | Borders Books & Music |
| Mall of Louisiana | Borders Books & Music |
| Northridge Fashion Center | Borders Books & Music |
| Park City Center | Borders Books & Music |
| Park Meadows | Borders Books & Music |
| Park Place | Borders Books & Music |
| Pinnacle Hills Promenade | Borders Books & Music |
| Providence Place | Borders Books & Music |
| Southland Center MI | Borders Books & Music |
| Southwest Plaza | Borders Books & Music |
| Stonestown Galleria | Borders Books & Music |
| Village of Merrick Park | Borders Books & Music |
| West Oaks Mall | Borders Books & Music |
| Salem Center | Borders Express |
| Silver City Galleria | Borders Express |
| Staten Island Mall Phase I | Borders Express |
| Steeplegate Mall | Borders Express |
| The Mall in Columbia | Borders Express |
| Three Rivers Mall | Borders Express |
| Valley Plaza Mall CA | Borders Express |
| White Marsh Mall | Borders Express |
| Chapel Hills Mall | Borders Inc. |
| Pine Ridge Mall | Borders Inc. |
| The Boulevard Mall | Borders Inc. |
| The Boulevard Mall | Borders Inc. |
| Colony Square Mall | Waldenbooks |
| Eastridge Mall WY | Waldenbooks |
| Lakeside Mall | Waldenbooks |
| Oxmoor Center | Waldenbooks |
| Pine Ridge Mall | Waldenbooks |
| Washington Park Mall | Waldenbooks |
| Westwood Mall | Waldenbooks |
| Woodbridge Center | Waldenbooks |
Isabella Steger
Gillian Tan
the worst part is that as more of these bookstores close, people aren’t simply going to read ebooks and things like that. It isn’t that simple, and us human beings are really alittle too lazy for that. they will just stop reading instead! DX
I don’t think technology is at fault here. Businesses need to adapt with the current trends and bookstores cannot do that because almost every book can be read electronically. It’s really a good thing. Yes it’s bad for Borders but this is how life is – out with the old and in with the new…
I am very sorry to hear of Borders bankruptcy & the resulting store closings. But inasmuch as this hurts GGP’s bottom line – Good!
ebooks are to blame–period. Look what happened to the music industry? The only way artists make money is with live performances. In the end, books, especially textbooks, were Overpriced and basically a scam(55th
edition?).
Agree Realty announces a huge dividend cut – from $2.04 to $1.60 – and blames it on Borders. Definitely qualified as a major headache!
“Given the continuing uncertainties due to the bankruptcy of Borders Group,
Inc., the Board of Directors has adjusted the dividend to a level that we
believe should provide the Company with sufficient liquidity and flexibility
to accommodate any further developments in the bankruptcy,” said Richard
Agree, Chairman and Chief Executive Officer. “