Amazon v. Borders

Borders Group filed for bankruptcy protection in early 2011 (Wahba, 2011) and began liquidating its assets in July of the same year (Khouri, 2011). The company was founded in 1971 and operated an expanding network of stores until 1992 when the group was bought by Kmart and later merged with Waldenbooks. The combined entity was spun off with an IPO in 1995. Flush with capital, by 1997 the company announced an ambitious plan to grow the chain rapidly. In launched its online site in 1998, three years after Amazon entered the business. In 1999, the company made an ill-advised purchase of a toy retailer that hurt its liquidity and was forced to seek options to recapitalize. It signed a deal with Amazon to run the Borders e-commerce site. The company continued to have problems in the late 2000s, including another liquidity crisis, job reductions and it finally...
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