Several airports around the country are seeking new tenants for spaces vacated by the bankrupt Borders chain of bookstores. Borders had 26 airport stores in operation but began closing stores earlier this year as part of the bankruptcy proceedings.
Borders did not return repeated calls for comment, nor did attorneys representing the firm in its bankruptcy proceedings. Published reports say all airport stores were emptied and the leases rejected in early August.
The demise of one of the airport industry’s successful airport retailers leaves spaces available for other potential tenants. At Indianapolis International (IND), gears are in motion to find a new tenant.
“Since we learned that Borders was in bankruptcy, we’ve been talking with people about their interest in the space,” says Jeremiah Wise, director of retail operations. “In our airport, it’s a great location and Borders was doing very good business. Books are still one of the top specialty retail sellers in the airport, although it has been a declining business over the last year or so.”
Wise adds that the new tenant may not be a bookseller.
“We’ve talked to people about providing that same service in this airport, as well as other specialty retail concepts that could fit within that space that could augment the specialty retail that we already have here at the airport,” he says. “We received a lot of interest. We’re looking to have a decision made on that space as quickly as possible.”
The Borders lease at IND was set to expire at the end of 2013, but Wise says that depending on the new concept, the lease term may be different.
Port of Seattle is also looking for a new tenant to fill the spot vacated by Borders at Seattle-Tacoma International (SEA). On Aug. 9, the Port of Seattle Commission agreed to pay $70,000 to terminate the lease, allowing the airport to look for a local tenant. Media officer Perry Cooper says the new tenant is “preferably a bookstore.”
Unlike some other airports, SEA opted to buy back its lease. Perry says the lease was valuable because four years remained, and the bankruptcy liquidators were looking to sell it to make money. He said the buy-out option allowed SEA to ensure the lease wouldn’t go to auction.
Two Borders stores at Baltimore/Washington International Thurgood Marshall (BWI) were closed when the company rejected the leases and liquidated the stock, as was one store at Boston Logan International (BOS), according to Mark Knight, president of AIRMALL USA, which manages concessions programs at the two airports.
“We really thought there would be a new owner that would still be operating the Borders bookstores in some fashion, so we had to scramble a little bit to make sure we had something in the space,” Knight says, noting that early indications were that Borders would have a buyer. The company decided to liquidate this summer. “Hudson Group is operating bookstores [at BWI] temporarily, then we will fully assess what we would like to do long term. We’ll make that judgment over the next few months.”
At BOS, AIRMALL may take a different approach.
“Right now, we are completing some negotiations for the site both short term and long term,” Knight says. “At this point, we’re looking at something other than just a bookstore replacement there.”
Both Knight and Wise say that at least for the short term, books remain a very viable retail business at airports despite a decline in demand for printed materials.
“I think the question is, does that decline continue and for how long can a stand-alone bookstore or a store that primarily specializes in books be a viable business?” Wise asks. “We still think that in the short to medium term – three to seven years – that it will still be a very strong stand-alone business to have in an airport.”
