Why Borders failed and Barnes & Noble hasn't: 4 theories

One mega bookseller is shuttering all of its stores, while the other has found its Nook

Borders
(Image credit: Spencer Platt/Getty Images)

On Monday, Borders announced that it would liquidate its remaining 400 stores in an effort to pay off creditors, quashing any hope that the 40-year-old, bankrupt bookstore chain would rise again. "The truth is that Borders has been facing headwinds for quite some time, including a rapidly changing book industry, eReader revolution, and turbulent economy," company president Mike Edwards wrote in a letter to employees. "We put in a valiant fight, but regrettably, in the end we weren't able to overcome these external forces." And yet, Borders' main competitor, Barnes & Noble, has managed to survive, if not exactly thrive (it put itself up for a sale a year ago and has had only one interested buyer). Where did Borders go wrong? Here, four theories:

1. It made a fatal deal with Amazon

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