On Borders


In “You’ve Got Mail” Joe Fox (Tom Hanks) family business turned Goliath Fox’s Books, a Borders-like mega chain, moves into a New York neighborhood and crushes the life out of Kathleen Kelly’s (Meg Ryan) local bookstore The Shop Around the Corner. Now the giant is Amazon and a more nimble Barnes and Noble and Borders is The Shop Around the Corner except for one thing. Kathleen Kelly’s fictional shop employed a handful of highly educated, well positioned job seekers in the booming late 1990s while Borders employed 11K workers who are losing their jobs in the worst recession since the great depression. The hits just keep on coming.

UPDATE: Also, the argument that Borders failed because of taxes is nutty on its face. Tea Party/Norquist ideology passed off as facts. Barnes and Nobles exists and is still in business. They incur taxes for books sold in stores as well, but pursued an e-reader strategy based around the nook that has helped them increase revenue. Borders fell because they were poorly managed inefficient business. Not because of predictable sales taxes.

Comments are closed.