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People losing their local Borders bookstore may turn to their local library for books and DVD’s. But that may put an even bigger strain on Michigan’s already-struggling libraries.

Libraries face a tough paradox.  People tend to use them more when the economy is bad. But a bad economy also means they get fewer resources to work with.

Public transportation officials in Grand Rapids are excited about one detail in President Obama’s budget announced this week. A proposed rapid bus transit system in Grand Rapids is one of ten new construction projects that Obama would like to fund in 2012.

Keeping the brains here at home.

The University of Michigan Ross School of Business and the Changing Gears project are partnering on a panel discussion about "brain drain" being held at 5 p.m.

Update 4:37 p.m.

Independent bookstores are waiting to see what kind of impact Borders’ bankruptcy will have on business. Michigan Radio's Jennifer Guerra spoke with Nicola Rooney, owner Nicola’s Books in Ann Arbor.

Rooney expects business to pick up at her store now that one of the Borders in Ann Arbor is slated to close. She said Borders’ financial problems are not emblematic of the book business in general:

"No, it’s not the death knell of bookstores by any means. They did a lot of things wrong over the years…and at any time there were things they could have done differently that they did not, and this of course from someone who knows maybe two percent of what was really going on inside, because you never know the real story," said Rooney.

Rooney blames Borders's problems on its poor website strategy, and frequent management changes.

Update 12:07 p.m.

Michigan Radio's Jennifer Guerra reports that of the stores slated for closing so far, four are in Michigan:

• Dearborn
• Utica
• Grosse Pointe
• Ann Arbor - the Arborland location.

Guerra spoke with Ann Arbor resident Jack Love about the bankruptcy:

"I’m sad. They’re nice places to go, pick up a book, look through it, of course Borders has more than just books: coffee, book readings, public gatherings," said Love.

Guerra says Love partly blames himself for Borders’ financial problems - he’s a book fiend who buys most of his books online at Amazon.

Update 11:58 a.m.

The Wall Street Journal's Law Blog has posted a list of the top Borders creditors - Who's Owed What in Borders' Bankruptcy.

Not surprisingly, book publishers top the list. Penguin Putnam Inc. is at the very top. They're owed $41,118,914.

Update 11:33 a.m.

Michigan Radio's Steve Carmody just spoke with Rob James, the president of EXP Realty Advisors. EXP specializes in real estate valuations for companies in bankruptcy.  James told Carmody that "no doubt about it" the Borders store closings will have a ripple effect in the retail industry:

"It's going to put a lot of strain on the shopping center industry and its going to hurt a lot of landlords," said James.

Update 11:07

Here is the list of stores Borders plans to close

Update 11:00 a.m.:

The company has released a list of stores it plans to close. We'll have that list posted shortly.

The Wall Street Journal reports the company has secured a loan that will keep the company going while it goes through bankruptcy reorganization. From the WSJ:

The Ann Arbor, Mich., company also said it has lined up a $505 million loan from GE Capital to fund its operations while in bankruptcy. Access to such a loan is subject to court approval.

In its bankruptcy petition, Borders listed assets of $1.28 billion and liabilities of $1.29 billion as of Dec. 25.

Borders' five largest unsecured creditors are the book publishers Penguin Putnam Inc., Hachette Book Group, Simon & Schuster Inc., Random House and Harper Collins Publishers.

AnnArbor.com has some extensive coverage of the bookseller's bankruptcy filing, including a live blog. Nathan Bomey of AnnArbor.com reports on some of the scenarios that could unfold during the bankruptcy reorganization. They also highlight some of the missteps in Borders history. From AnnArbor.com:

Among the company's biggest mistakes was allowing Amazon to manage its online sales from 2001 to 2008.

“They never really harnessed the power of the Internet,” said David Dykhouse, a manager of Borders’ Arborland store from 2002 to 2007. “As someone once said, the Internet is the comet that killed the dinosaur. I’m afraid Borders is one of those dinosaurs.”

8:09 a.m.

Borders Group is filing for Chapter 11 bankruptcy reorganization after a long struggle to stay afloat. Borders had a difficult time keeping up as the book and music businesses changed beneath its feet.

The 40-year-old Ann Arbor company plans to close about 30 percent of its stores, or about 200, over the next few weeks. The company will receive $505 million dollars in so-called debtor-in-possession financing from GE Capital and others to help it reorganize.

Borders has recently delayed payments to its vendors, landlords and other creditors. Big-box bookstores have struggled as more people buy books online, in electronic form or at grocery stores or discounters such as Walmart.

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.

Mayor Dave Bing says there’s a lot the city of Detroit can learn from the way the city of New Orleans has tried to recover from Hurricane Katrina.  And, there’s much they can learn from Detroit.  

For $29.95 you can continue the buzz that started with the "Imported from Detroit" Super Bowl ad.

Chrysler is selling t-shirts with the "Imported from Detroit" logo on its Chrysler Collection website ('imported' from the USA, according to the website).

The Detroit Free Press asked a Chrysler spokesperson if the design will be on other items:

Chrysler spokeswoman Dianna Gutierrez said, “It’s too early to discuss. I don’t have any formal details to share at this time.”

The epic two-minute ad is still running on television in edited down one-minute and 30 second versions.

With the impending bankruptcy of Borders Group Inc., we thought we'd give you a quick explanation of the two types of options facing the company.

Chapter 7 Bankruptcy

Also known as "liquidation" or "straight bankruptcy." It sparks an 'everything must go' sale of the company's assets. The company may cease operations after filing Chapter 7 bankruptcy.

The company that owes the money files for Chapter 7 bankruptcy in court. The company's assets are turned over to a bankruptcy trustee who then sells the assets and tries to pay back the company's creditors. In exchange, the company that owes the money is freed from having to pay all of its bills in full (unless some wrongdoing is found).

The details of Chapter 7 rules vary from state to state.

Chapter 11 Bankruptcy

Also known as "reorganization" bankruptcy used by many corporations (like K-Mart and General Motors).

After filing for Chapter 11 bankruptcy, the company that owes money typically keeps running its business and keeps its assets while going through a reorganization process overseen by the court.

A reorganization plan is put forth, and if the majority of creditors accept it, and the court accepts the plan - the company continues operating and repays its creditors under the reorganization plan.

Payment to creditors can come from the sale of assets, repayment from future profits, or from mergers or recapitalization.

The largest portion of a former General Motors Plant in the Grand Rapids suburb of Walker is back up for sale. The more than quarter-million-square-foot space was to supposed to become a massive movie studio known as Hangar42.