Earlier this year, the second largest bookstore chain in America ended up in a tight financial position. After many months of attempting to resolve their debt crisis and stay profitable, Borders ended up seeking debt relief through bankruptcy.
Although they were forced to lay off thousands of employees and close several stores, Borders was able to save some of the business and remain in operation. However, remaining in operation also comes with a cost; namely, losing some of their assets to a major competitor.
Barnes & Noble Profits From Borders Loss
In last week’s bankruptcy auction, Barnes & Noble bought most of the trademark websites and intellectual property that was once owned by Borders. Purchased for $13.9 million, Barnes & Noble now owns the right to brand names, internet items and internet addresses. They also bought customer lists , which includes information such as customer purchase histories and book preferences.
Besides taking over the rights to the Borders name brand, Barnes & Noble has greatly expanded their market share. They anticipate a $50 million boost in sales this year alone. Final approval of the sale of such assets is expected later today by a bankruptcy judge.