Ann Arbor

Lorna Is / Flickr

The Wall Street Journal is reporting that Borders Group Inc. will move its headquarters from Ann Arbor to the Detroit metro area. The company is currently operating under Chapter 11 bankruptcy. From the Journal:

Borders Group Inc. plans to tell publishers and landlords Wednesday it has achieved major cost savings, including more than $30 million in rent reductions, and that it will move out of its Ann Arbor, Mich., headquarters for cheaper office space in the greater Detroit metro area.

Presenting its business plan to an unsecured creditors committee, predominantly made up of publishers and landlords, Borders also plans to say it has now closed about 50 superstores as part of efforts to emerge from Chapter 11 bankruptcy, according to people familiar with the matter. Altogether, Borders will close 226 by the end of next month, although a handful of additional stores could be closed, depending on negotiations with landlords, the people said.

News organizations around the state were quick to pick up the report:

Scio Residents for Safe Water

The Michigan Department of Environmental Quality is holding a public meeting tonight about changes to the 1,4-dioxane groundwater cleanup plan in Ann Arbor.

The meeting will be held at 7:00 p,m. at Abbot Elementary School, 2670 Sequoia Parkway, Ann Arbor.

From the MDEQ:

(photo by Steve Carmody/Michigan Radio)

A federal bankruptcy judge has decided to give Borders Group another 90 days to review leases for its bookstores.   The Ann Arbor-based bookstore change is working to emerge from bankruptcy later this year. Borders is already closing 200 bookstores across the country, including 4 stores in Michigan.   Borders is expected to announce plans to close additional stores and renegotiate leases on about 600 other outlets. 

Jennifer Guerra / Michigan Radio

Update March 14th, 10:14 a.m.

Tony Dearing is AnnArbor.com's chief content officer. He posted a comment over the weekend on AnnArbor.com about the layoffs. Here's what he wrote:

While personnel issues are an internal matter and we don't discuss them publicly, I can confirm that we reorganized our newsroom this week to put our focus more squarely on local news coverage. As a new organization, we have tried a lot of things. Now that we are well into our second year, the community has told us very resoundingly that what it wants most from us is hard news coverage, particularly in the areas of government, education, police, courts, health, the environment, University of Michigan sports, and business. These areas of coverage account for all but a tiny percentage of our readership and revenue. Meanwhile, we also have put a lot of effort toward other things -- including lifestyle topics like Passions and Pursuits, The Deuce, Homes and some areas of Entertainment coverage -- that our community has shown much less interest in, and we are scaling back in those areas.

We have made tremendous progress since we launched, and we continue to be very happy with the growth we're seeing in audience and revenue. But from the beginning, we said that we would be shaped by what the community wants, and the community wants us to focus more sharply on local news reporting. We have repositioned ourselves to throw our energy and resources into our local news coverage and that is how we will operate moving forward as we continue to grow.

user jamiesrabbits / Flickr

On the public radio program Here & Now, host Robin Young was interviewing Gabrielle Hamilton, the chef and owner of the New York City restaurant “Prune.” She wrote a memoir called “Blood, Bones & Butter: The Inadvertent Education of a Reluctant Chef,” (which chef Anthony Bourdain called “simply the best memoir by a chef - ever.”).

During the interview Young asked Hamilton about her time in Ann Arbor, Michigan.

Young says, "like a lot of Americans, you thought, 'Ann Arbor, Michigan… cheese cubes.'"

You can hear Young's comment in the audio here. It's at the 6 minute mark.

That comment sparked one listener to write in. Phillip wrote:

I do hope that someone from your Michigan network of stations will  contact the host of Here and Now about her  comment yesterday  regarding Ann Arbor; specifically, in an interview with the chef/ author of Prune, the host
remarked something to the effect that "When  most of us think of Ann Arbor, we think of cheese cubes..."  Give me a  break!

Well, we did share that comment with the producers at Here & Now and host Robin Young wrote back:

Dear Phillip

OY YI YI!!!!

The cheese cube kerfuffle!!

We're going to address on a letters segment on air, but I've been writing the (many!) people who've written.

Just to clarify.. what I said was, "YOU" (meaning the author) thought Michigan meant cheese cubes. This is what she writes in the book! Then I went on to say, but you found otherwise.

I buy from Zingermans!! I don't think Ann Arbor means cheese cubes!

SO sorry for leaving that impression,

Best
Robin Young
Here and Now

Steve Carmody / Michigan Radio

Borders Books started in Ann Arbor as a small independent book store.

Tom and Louis Borders opened it in Ann Arbor, Michigan in 1971.

The first Borders bookstore was located at 209 State Street, north of the State Theater.

Eve Silberman was a graduate student in Ann Arbor when she got a job at the very first Borders Bookstore owned by the Borders brothers.

The company recently declared bankruptcy.

Silberman sat down to talk with public radio host Dick Gordon of The Story.

Silberman talked with Gordon about her memories of working at the first Borders bookstore (she described herself as "not a very good worker").

She recalled several things about the first Borders Bookstore:

  • Joe Gable was the "shaper and caretaker" of the store (many thought Gable was a Borders).
  • Gable saw the store as a "cathedral of books" and the workers were the "worshippers."
  • Classical music played in the store.
  • Potential employees had to take a test to get a job at the store.
  • The store carried unique titles.
  • The store's cash register was complex at the time.

Host Dick Gordon asked Silberman about the sense in Ann Arbor about the misfortunes of Borders.

(photo by Steve Carmody/Michigan Radio)

The company handling the liquidation sales at some 200 Borders Books stores announced today the sales will begin Saturday.   Hilco Merchant Resources of Chicago issued a press release saying the liquidation will begin with 20 to 40% on all merchandize with some exceptions. Over $350 million of inventory including books, magazines, music and movie media, calendars, posters and more will be liquidated.  

Borders: What's Next?

Feb 17, 2011
(photo by Steve Carmody/Michigan Radio)

Borders Books’ successful trip through bankruptcy is contingent on deals with publishers.    Borders filed for bankruptcy protection Wednesday. 

Court documents show the Ann Arbor-based bookseller owes more than $150 million to 7 publishers, including Simon & Shuster, Random House and Penguin.    Borders has also been delaying payments to publishers since December. 

(photo by Steve Carmody/Michigan Radio)

Independent bookstore owners are not sure whether Borders Books expected bankruptcy filing this week will be good news for their businesses. 

Analysts expect Borders will close 200 or more stores as part of any bankruptcy plan.  

When Borders Books and other mega-bookstore chains started opening 40 years ago, it seemed like the end for many small local bookstores.   They found it difficult to compete with the big stores with their wider selections, coffee bars and other amenities. But the obituary for the corner bookstore was a bit premature.  

Now that online book sales and e-book readers are shrinking the market for big-box bookstores,  the smaller footprint booksellers suddenly have a brighter future. Deb Leonard is the executive director of the Great Lakes Independent Bookseller Association

“Those independent stores in those neighborhoods will benefit because people need a place to go.”

Leonard says, in some cases, local bookstores might consider taking over former Borders locations.

(Steve Carmody/Michigan Radio)

Borders Books is expected to begin its next chapter this week. The Ann Arbor based bookseller is expected to file for bankruptcy protection Monday or Tuesday. 

On Friday, the Wall Street Journal reported Borders will likely file for bankruptcy protection this week. Borders stock fell by a third on the news.

It’s not like the news was unexpected. Borders has been struggling financially for years. Less than a year ago,  investors were paying more than $3 for a share of Borders stock. When the market closed Friday, you could have bought a share of Borders Books for 25 cents.

Borders is still the nation’s number 2 traditional bookstore with more than 600 stores. But as book buyers have spent more online, Borders’ share of the total book market has shrunk.

It’s been delaying payments to publishers and others since December, as the company has tried to hang on to some cash. Borders’ bankruptcy plan reportedly includes closing more than 200 stores. 

No word on what the plan is to convince book buyers to return to Borders.

The Rise and Fall (and Re-Rise?) of Borders Group.

The Wall Street Journal is reporting that Borders Group may file for bankruptcy protection on Monday or Tuesday next week. The Ann Arbor-based bookseller has struggled in recent years as book buyers have migrated from big box stores to the web.

Ruthanne Reid / Flickr

This could be a pivotal week for the future of Borders Books with some sources saying the company could seek bankruptcy protection.    

The Ann Arbor-based bookseller delayed payments to publishers and others the past two months.   The company has been trying to negotiate with its vendors and come up with a plan to move forward.    Borders has a half billion dollar financing deal in place, if it can come to terms with its vendors. 

Jeff Manning is a managing director with BDO Capitol Advisors.   Manning’s company closely follows the retail market. 

"The challenge,  if you look at the statistics,  majority of companies that enter bankruptcy do not emerge.  If you look at recent statistics with retailers, an awful lot of retailers have gone straight into liquidation." 

Manning expects Borders’ vendors will decide it’s more in their interest to keep Borders viable. He says, if Borders does file for bankruptcy, the company will probably exit bankruptcy before Christmas.   But Manning says Borders execs must be careful, since the bookseller is in a precarious position:

"One foot in the grave and one foot on a banana peel," says Manning.

 

The Rise and Fall (and Re-Rise?) of Borders Group.

Jeremy Hiebert / Flickr

Members of the Cleveland Orchestra (TCO), trapped in Ann Arbor because of the recent snowfall, ended up putting on an impromptu performance on Wednesday with members of Classical Revolution Ann Arbor (CRAA), a local chamber music collective.

Because of the snowstorm, TCO was unable to leave Ann Arbor in time for a concert Wednesday at Chicago's Orchestra Hall. The musicians chose to pass the time playing with University of Michigan students and amateur musicians at Sylvio's Organic Pizza in Ann Arbor, where CRAA meets every Wednesday for jam sessions.

The first quartet of the evening consisted of Bill Preucil, TCO's concertmaster, TCO violist Joanna Patterson, cellist Ed Baskerville, and University of Michigan student violinist Dan Winnick. Other TCO musicians showed up to play throughout the evening, including principal oboe Frank Rosenwein and principal flutist Joshua Smith.

Read and watch more over at University Musical Society's page.

Brian Short - Michigan Radio Newsroom

Ann Arbor-based Borders Books announced Sunday that it would be delaying January payments to its landlords, vendors and others. Borders also delayed payments in December.  

Borders says the move is intended to ‘protect liquidity’. Borders has been losing money for years, as book buyers have increasingly turned to the internet.

Michael Norris is the senior trade book analyst with Simba Information. He says there is one problem Borders executives must find a solution for. 

They need to answer the question 'Why should I shop at Borders? They should tattoo that question backward on their forehead so they can see every time they look into the mirror every morning.

Borders lined up a half billion dollars in financing last week to help the book seller stay afloat. But the company may still be headed toward bankruptcy protection

Ann Arbor-based Borders Books may be able to stave off bankruptcy, thanks to a new financing deal announced this week .     Professional writers are waiting to see what the company’s next chapter will bring. 

Photo courtesy of the University of Michigan

A new type of incubator is open for business at the University of Michigan. It’s called a “venture accelerator,” and it’s located in the  sprawling research complex Pfizer built before it left Michigan a few years ago.

 Toyota Motor Corporation has launched a new $50-million dollar safety research center in Ann Arbor, as the company seeks to recover from last year’s massive recalls of millions of cars. 


The money will pay for research on ways to reduce driver distraction, and better protect the most vulnerable passengers including children.  Chuck Gulash is senior executive engineer at Toyota Technical Center in Ann Arbor. 

The Big Chill logo from the University of Michigan
University of Michigan

More than 109,000 hockey fans are expected to be on hand for Saturday afternoon’s outdoor game at Michigan Stadium.  Its being called the Big Chill for a reason.

The Michigan Wolverines will skate against the Michigan State Spartans in a game that will likely break the all-time attendance record for a hockey game.

(courtesy of Borders Group/photo credit: Laszlo Regos)

Borders Books reported the company lost $74 million dollars in the 3rd quarter. That's about twice as much as Borders lost in the 3rd quarter of 2009. The Ann Arbor based book seller continues to struggle in a competitive market.

In a written statement, Borders Group CEO Mike Edwards conceded his company's struggles:

Ildar Sagdejev / creative commons

Update: 2:12pm:

Since we posted this story we found this analysis piece by Sarah Weinman of Daily Finance News. She also calls the notion that Borders Books could buy Barnes & Noble a story that has "entertainment value" not much more. Weinman says of Borders Books:

"If a merger was its plan for saving itself, expect B&N's rejection of the deal to accelerate its downward spiral -- an end that, sadly for the publishing industry, is likely to come sooner rather than later."

A stack of The New Yorker magazines
Tsmall/Flickr

If you're a habitual reader of The New Yorker magazine or you just browse the latest issue's cartoons then you may have noticed a recent cartoon that made you think of home... home that is, if you live in the Ann Arbor or metro-Detroit areas.

As AnnArbor.com puts it:

Without spoiling the joke, we'll just say the cartoon — by Ann Arbor's Dave Coverly — makes reference to shopping malls — and specifically, several we're very familiar with, including Briarwood Mall, Westgate Plaza and Jackson Plaza. Troy's Somerset Mall and Oakland Mall also get a shout-out.

You can see the cartoon at The New Yorker's website.

 


A DTE spokesman expects power will be restored to about 500 customers in the Ann Arbor later area today.


The power went out around midnight last night.  

Officials under Stadium Avenue bridge in Ann Arbor
Congressmen John Dingell's Office

Congressman John Dingell's office has announced that the federal government will chip in $13.9 million dollars to fix an aging Ann Arbor bridge.

The four lane bridge on Stadium Avenue, which runs past the "Big House," has been down to two lanes because it's so dilapidated.

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