Borders entered bankruptcy protection last week as it grappled with mounting debt and credit concerns. The company said it will continue to operate while in bankruptcy court, but announced that it will shutter 200 locations.
Barnes & Noble said during its conference call with Wall Street that it may open some stores in the locations being vacated by Borders. CEO William Lynch said select Borders stores set to shutter "appear attractive to us," and he is hoping landlords may be willing to cut deals on rental costs.
This raised questions from analysts about why Barnes & Noble would want to invest more in brick-and-mortar locations.
Lynch said Barnes & Noble stores are still profitable and that most of Nook sales occur in stores.In light of Borders bankruptcy and Barnes & Noble's lackluster earnings report, what do you think the future holds for the company? Take our poll and see what TheStreet readers are saying....
>To contact the writer of this article, click here: Jeanine Poggi. >To follow the writer on Twitter, go to http://twitter.com/jpoggi. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV