9 News has reported that the giant bookseller, Borders, has filed for bankruptcy protection. The bookseller has been troubled by debt for years and has struggled to find ways to compete in a “rapidly changing industry.” Borders will close 200 stores in the next several weeks, including 6 of its stores in Colorado. Things may get worse for the 40-year-old company. It was unable to “reach an agreement with creditors and file a prepacked bankruptcy,” which suggests to at least one bankruptcy expert that its creditors don’t believe the company will be able to turn the corner in the near future. Borders hasn’t reported a profit in the last 4 years and will face stiff competition from superstores like Walmart and Costco as well as a serious decrease in consumer spending on books.

According to the Office of US Courts, bankruptcy involves a debtor proposing a “plan of reorganization to keep its business alive and pay creditors over time.” Chapter 11 is primarily used by businesses but may also be used by individuals to create a plan for paying creditors. As the above explanation suggests, the purpose of Chapter 11 for a company like Borders is to payoff debts and ultimately keep the business operational. A bankruptcy procedure like this is a complicated matter involving the courts and requires the expertise of a bankruptcy attorney or firm.

Do you or someone you know have questions only a bankruptcy expert can answer?  Call an experienced Colorado bankruptcy lawyer today. Brian Daniel has years of experience working on bankruptcy cases in Colorado and he will put his expertise of the law to work for you. For a free review of your case, call his office today at (303) 951-0233.

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