 
Dcmorrison12
Member
Username: Dcmorrison12
Post Number: 39
Registered: 02-2009
| | Posted on Thursday, February 26, 2009 - 6:48 pm: |    |
"Borders will close its store at 830 N. Michigan Ave. in January 2010, saying it fails to meet profit goals.
About 100 employees will be affected.
Steve Davis, senior vice president of Borders Group Operations, said the Ann Arbor, Mich.-based Borders maintains its commitment to Chicago, and will continue to operate its 19 other stores in the region.
"In today's economy, no retailer can afford to operate stores that do not produce the kinds of results required to sustain a location," Davis said.
The store has operated on the Magnificent Mile since 1995"
This sounds VERY similar to the Detroit story, but in CHICAGO. Maybe it's not Detroit afterall? |
Riley484
Member
Username: Riley484
Post Number: 20
Registered: 05-2008
| | Posted on Thursday, February 26, 2009 - 7:09 pm: | |
Those quotes are almost verbatim for the announcement of the Detroit closing. Border's as a company is a complete mess. Fifty cent stock prices won't make it long. They're in danger of getting d-listed from Wall Street. |
Leannam1989
Member
Username: Leannam1989
Post Number: 200
Registered: 06-2008
| | Posted on Thursday, February 26, 2009 - 7:33 pm: | |
Might have more to do with Borders itself than the city.
Chicago has its problems, too, but one closing doesn't necessarily reflect on the health of the city as a whole. |
Iheartthed
Member
Username: Iheartthed
Post Number: 3831
Registered: 04-2006
| | Posted on Thursday, February 26, 2009 - 7:52 pm: | |
quote:Might have more to do with Borders itself than the city.
Chicago has its problems, too, but one closing doesn't necessarily reflect on the health of the city as a whole.
That was the OPs point. When the Borders in downtown Detroit announced that it was closing, many attributed it Detroit. Thus the reason for the OP pointing out that a Borders in a high traffic area of Chicago is closing for exactly the same reason as the one in Detroit. |
Thecarl
Member
Username: Thecarl
Post Number: 901
Registered: 04-2005
| | Posted on Thursday, February 26, 2009 - 7:56 pm: | |
that leaves seven borders' in the city of chicago. how many will be left in detroit? |
Detroitrise
Member
Username: Detroitrise
Post Number: 3814
Registered: 09-2007
| | Posted on Thursday, February 26, 2009 - 8:24 pm: | |
quote:that leaves seven borders' in the city of chicago. how many will be left in detroit?
Let's see...
1-1 = 0
Well at least there are 7 locations in Oakland County.
(Message edited by DetroitRise on February 26, 2009) |
Mortgageking
Member
Username: Mortgageking
Post Number: 266
Registered: 12-2006
| | Posted on Thursday, February 26, 2009 - 9:18 pm: | |
You do realize that Borders is a Michigan company?
This validates Detroit's business problems how?
I'm not sure what your point is DCMorrison. |
Detroitbob48209
Member
Username: Detroitbob48209
Post Number: 5
Registered: 02-2009
| | Posted on Thursday, February 26, 2009 - 10:21 pm: | |
I worked as a manager at BGI corporate in Ann Arbor when the lease was signed for the Detroit store. It was a 'KMA' done as a favor to a board member of Compuware. Borders group was expecting Compuware to buy huge amounts of books through the corporate sales program and that volume never reached expectations, even before the economic downturn.
As for North MI Ave in Chicago...that location was a 'vanity store'...the location, location, location was considered so important that they could take not breaking even for the sheer exposure that corner provided. If my memory serves me correctly, the lease was $10,000,000.00
(could be 12 million, I don't remember) ranking up there with the stores in Manhattan and San Francisco.
They are running out the leases, not closing early---but no one knows if Borders will survive...last time I check the stock had been trading far under 1.00usd.
Bob |
Lilpup
Member
Username: Lilpup
Post Number: 5349
Registered: 06-2004
| | Posted on Thursday, February 26, 2009 - 10:49 pm: | |
That Chicago location seemed pretty big, too - three floors as I remember. Killer location - next to Ghiradelli, kitty corner from the Water Tower.
Got to see Liza with a Z there for a dvd signing! |
Gsgeorge
Member
Username: Gsgeorge
Post Number: 739
Registered: 08-2006
| | Posted on Thursday, February 26, 2009 - 11:02 pm: | |
Detroitbob, welcome and thanks for the privileged information. |
Mind_field
Member
Username: Mind_field
Post Number: 492
Registered: 10-2003
| | Posted on Thursday, February 26, 2009 - 11:15 pm: | |
wow. From my April 2001 copy of fortune magazine, it proclaims that the Michigan Ave. Borders store is the top store in the chain based on sales per square foot. The blurb proclaims the store is the largest of the countries (at that time) 336 stores in selection and size (44,000 sq. ft.) I guess they just don't want to pay the magnificent mile rent anymore. |
Supersport
Member
Username: Supersport
Post Number: 2597
Registered: 10-2003
| | Posted on Thursday, February 26, 2009 - 11:20 pm: | |
1-1? Somebody obviosly doesn't know Detroit as well as they think. |
Sean_of_detroit
Member
Username: Sean_of_detroit
Post Number: 2328
Registered: 03-2008
| | Posted on Thursday, February 26, 2009 - 11:24 pm: | |
Chicago doing poorly at something really doesn't say anything about Detroit... |
Lilpup
Member
Username: Lilpup
Post Number: 5350
Registered: 06-2004
| | Posted on Thursday, February 26, 2009 - 11:29 pm: | |
Where's another, Sport? |
Detroitbob48209
Member
Username: Detroitbob48209
Post Number: 6
Registered: 02-2009
| | Posted on Thursday, February 26, 2009 - 11:41 pm: | |
they are reviewing some 70 plus stores that are considered "money pits" and most of them will close if corporate feels the turn around would either take to long or be to costly. Heard from a former coworker who got the ax at Headquarters last week that the new CEO has visited stores unannounced and incognito and he supposedly said he felt the customer service "sucked" in every location he had visited and that had to change asap.
With Chicago being hit as hard as it is, volume is down on NO MI Ave in general. With Lord and Taylor gone from WAter Tower and Macy's not attracting the same customer type as Marshall Field's things were significantly slower when I walked the street last month. 70.00 French and/or Italian fashion magazines are the first things to read in a comfy chair at the store instead of buying it and taking it home. Border's leases are considered too expensive, one of the reasons Barnes and Noble stopped talking to them about merger/aquisition last year. |
Lilpup
Member
Username: Lilpup
Post Number: 5351
Registered: 06-2004
| | Posted on Friday, February 27, 2009 - 12:04 am: | |
They expanded too quickly and into weak locations. Thanks, Kmart! |
Detroitbob48209
Member
Username: Detroitbob48209
Post Number: 7
Registered: 02-2009
| | Posted on Friday, February 27, 2009 - 12:15 am: | |
Kmart Real estate developed the bulk of the Border superstores, on Kmart owned land, near their other properties and charged all the stores high rates, as it was all "internal". When KMart fell apart, the properties were sold with these long term leases intact.
In all honesty, most of the locations were great in the context of the day and time. Remember, downloading music and video had not materialized at that point, and Borders did a better job at category management and depth of selection than any other book seller.
BTW, I heard today that some independent bookstore has signed or is close to signing a lease for the corner of the Park Shelton...anyone know anything about that? |
Wolverine
Member
Username: Wolverine
Post Number: 602
Registered: 04-2004
| | Posted on Friday, February 27, 2009 - 6:08 am: | |
Damnit! That was my favorite reading location. The cafe has a nice view of the park.
I always thought the Broadway Uptown location was doomed to fail first before Michigan Av, but they are probably getting a good deal on rent and at least bring in some profit as opposed to that prime corner downtown.
It's really sad to hear borders is doing so poor these days. One of my friends was lucky to get out of the corporate office before the last two rounds of layoffs. |
Alsodave
Member
Username: Alsodave
Post Number: 740
Registered: 10-2003
| | Posted on Friday, February 27, 2009 - 9:16 am: | |
Thanks for the insight, Detroitbob. Category management and depth selection were two things we were very proud of when I worked at the Beverly Hills (13 and Southfield) store.
It looks like they're getting ready to clear out the Farmington Hills location--the music and movies selection is a fraction of what it used to be. There's also a lot of empty space upstairs at the Birmingham store. |
Jdkeepsmiling
Member
Username: Jdkeepsmiling
Post Number: 339
Registered: 01-2006
| | Posted on Friday, February 27, 2009 - 1:00 pm: | |
One difference that has not been pointed out yet is the lease rate difference between the Magnificent Mile in Chicago and in the Compuware Building. I imagine that their sales would have to be 3-5 if not 10 times what they were in Detroit just to make the rent. |
Gdub
Member
Username: Gdub
Post Number: 269
Registered: 10-2003
| | Posted on Friday, February 27, 2009 - 5:09 pm: | |
Wow, their stock is hovering at 50 cents a share? When I worked for them in the mid 90s I sold my stock options at something like $17 or $18. I feel sorry for any Borders old timers who thought they'd have a 401k after years of being underpaid. |
Lodgedodger
Member
Username: Lodgedodger
Post Number: 1559
Registered: 05-2008
| | Posted on Friday, February 27, 2009 - 5:16 pm: | |
>>Supersport: 1-1? Somebody obviosly doesn't know Detroit as well as they think.<<
Huh?
And, it is plainly evident someone doesn't know how to spell obviously. |