Borders Group, Inc. was founded in 1971 and quickly became an international presence as a book and music retailer.  After being acquired by Kmart in 1992, Borders would continue to spread throughout the country.  The company remained profitable until hitting sharp declines in 2006.

On this day, February 16th, in 2011, Borders bookstore announced that it had filed for Chapter 11 bankruptcy.  Since 2006, Borders had been losing more than $1 billion a year.  Borders attempted several strategies to save the company, including $42.5 million in loans from Pershing Square Capital Management and the replacement of the company’s CEO and 5 out of 8 board members. The company’s declining profits did not improve and Borders’ debt reached nearly $1.3 billion.

The bankruptcy announcement was accompanied by the announcement that 226 Borders stores would be closed and liquidated.   From February to July, Borders attempted to find a buyer to acquire the company’s remaining assets.  Direct Brands submitted a takeover bid in July, but the offer was rejected.  Subsequently, Borders announced that its remaining 399 locations would cease operations by September 2011.