photo © 2008 Ruthanne Reid | more info (via: Wylio)So the big bookstore Borders filed for bankruptcy today. It always surprises me that consumers place such stigma on personally filing for bankruptcy but when companies do it they are applauded for doing the right thing to keep the company going.
Border president Mike Edwards said, “It has become increasingly clear that in light of the environment of curtailed customer spending, our ongoing discussions with publishers and other vendor related parties, and the company’s lack of liquidity, Borders Group does not have the capital resources it needs to be a viable competitor and which are essential for it to move forward with its business strategy to reposition itself successfully for the long term. To position Borders to remedy this condition, Borders Group, with the authorization of its board of directors, has filed a petition for reorganization relief under Chapter 11 of the Bankruptcy Code. This decisive action will give Borders the opportunity to achieve a proper infusion of capital in order to have the opportunity to have the time to reorganize in order to reposition itself to be a successful business for the long term.” – Source
That’s just a lot of corporate speak that translates to the regular Joe’s house like this, “The paycheck is lighter, things are more expensive, the house is worth less and we are having problems making ends meet. In order to deal with out debt and move forward we are going to file bankruptcy.”
Now all I have to get people to realize is they need to stick on that Borders phrase, “to reorganize in order to reposition ourselves to be successful for the long term,” and things will be better.
For the average consumer it should read like this, “The paycheck is lighter, things are more expensive, the house is worth less and we are having problems making ends meet. In order to deal with out debt and move forward we are going to file bankruptcy to reorganize in order to reposition ourselves to be successful for the long term.
It’s time to look for a local bankruptcy attorney if you are struggling. Reorganize your debt and prepare for a better future. If it’s a smart move for Borders, it might just be the smartest move for you once you ditch the stigma.