As you can see, the downfall of Borders Books could have a ripple effect across book and game manufacturers alike. Can Borders survive bankruptcy? Possibly, but I have my doubts. Tim Anderson from Case Western University provided HeroClix World with the in-depth 45121 Book Stores in the US Industry report, which had this to say:

Over the five years to January 2010, the company experienced a negative revenue growth rate of 4.6% due to rising operating expenses, a decrease in consumer spending with the recession beginning in 2008, and a slow adaptation to new technology compared to Barnes & Noble, the company’s main competitor.

Borders experienced a sales decrease of 13.9% over the year ending January 2010. The decline was due to lower customer traffic and the continuing popularity of reading books in a digital format compared to a physical format. Borders also closed 212 Waldenbook stores because of the segment’s continuing net loss over the past three years. Lastly, the cost of books and rent rose, which increased the Company’s expenses. Overall, the net income over the year declined 41.4% from the previous year.

Obviously those negative numbers continued through 2010, because here we are in the midst of their bankruptcy.

The numbers are really telling though, and I didn't even mention the stores they closed/sold off in the UK, Singapore, and New Zealand -- all bad signs for a company that went from a $143 million net income in 2004-2005 to a $36 million net income in 2009-2010.