Chapter 11 Bankruptcy: Borders Files Chapter 11 Bankruptcy to Close 30 Percent of Stores

NEW YORK—Bookstore chain Borders Group Inc. announced that it would file for Chapter 11 bankruptcy protection on Wednesday morning and plans to close almost a third of its store locations in the United States

The No. 2 bookstore behind Barnes & Noble Booksellers (B&N) in the U.S. market, Borders resorted to bankruptcy after capital restructuring and expense cutting failed to stem losses.

Borders faced a tough transition from print to digital books and was left in the dust facing stiff competition from both online retailer Amazon.com, whose Kindle e-reader has been wildly successful, as well as from its archrival B&N, which has experienced its own success with the Nook.

“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,” said Borders President Mike Edwards in a statement.

The company said Wednesday that it would look to close 30 percent of its stores and received $505 million in debtor-in-possession loans from a consortium of lenders including GE Capital.

“This financing should enable Borders to meet its obligations going forward so that our stores continue to be competitive for customers in terms of goods, services, and the shopping experience,” Edwards said.

In a Chapter 11 filing with the U.S. Bankruptcy Court in Manhattan on Wednesday, Borders listed assets of $1.28 billion and debt of $1.29 billion. The largest unsecured creditor listed by the company was book publisher Penguin Putnam, with $41 million in unpaid claims. The company’s biggest shareholder of record was Pershing Square Capital Management LP, a hedge fund.
Read More: Theepochtimes

Fake Robot Baby Provokes Real Screams

Uncanny valley, heard of it? No worries, you're knee-deep in it right now. It's the revulsion you feel to robots, prostheses, or zombies that try, but don't quite duplicate their human models. As the robot becomes more humanlike, however, our emotional response becomes increasingly positive and empathetic. Unfortunately, the goal of Osaka University's AFFETTO was to create a robot modeled after a young child that could produce realistic facial expressions in order to endear it to a human caregiver in a more natural way. Impressive, sure, but we're not ready to let it suckle from our teat just yet.

CEO arrested in sex sting

The founder of two chains of natural foods grocery stores has been arrested in a child prostitution sting in Phoenix. Sunflower Farmers Market CEO Michael Gilliland, 52, was accused of soliciting sex online with someone who identified herself as an underage girl. He faces a charge of felony child prostitution. Gilliland resigned from Sunflower, which has locations in seven states. He also founded Wild Oats Markets Inc., which was bought by Whole Foods Market in 2007. Gilliland was one of eight men arrested in the sting. Sunflower said he told the company he believed he was not guilty and would be exonerated. Mr Gilliland was not available for comment on the charges.

Pay by app at Starbucks

Starbucks customers can now use an app to pay for their coffee at thousands of locations nationwide. With a smartphone, an app and a Starbucks card, users can get a barcode they can use to pay. An Android app reportedly is in the works.

Facebook phone on the way

.

Facebook is reportedly teaming up with HTC to create the first “Facebook phone.”  The phone will be heavily integrated with Facebook, with the news feed reportedly being placed on the home page.  HTC will reportedly unveil the new phone at Mobile World Congress.