Despite Borders' liquidation, University of Michigan 'continues to insulate' Ann Arbor
The impact of Borders Group Inc.'s liquidation on the Ann Arbor economy is significant but hardly deadly.
Borders' downtown store is expected to close as part of its liquidation.
Melanie Maxwell | AnnArbor.com
About 400 employees still work at Borders' headquarters on Phoenix Drive on Ann Arbor's south side. The chain is also expected to close its flagship store on Liberty Street in downtown Ann Arbor and a superstore on Lohr Road in Pittsfield Township.
Ann Arbor "is expected to be able to absorb the job loss," WSJ reported this afternoon. "The University of Michigan, the city's largest employer, continues to insulate Ann Arbor from the severe downturn that ravaged many parts of Michigan over the last three years."
The story documents the evolution of Borders' relationship with Ann Arbor.
But some customers aren't too disappointed at the chain's liquidation announcement.
"It's like an old kitchen in here," Yuching Lin, a 20-year-old college junior, told WSJ while sitting inside the flagship store.
Read the entire WSJ story here.
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
Comments
Rob Pollard
Wed, Jul 20, 2011 : 2:41 p.m.
Once again, did people commenting negatively even read the article? It said, "The University of Michigan, the city's largest employer, continues to insulate Ann Arbor from the severe downturn that ravaged many parts of Michigan over the last three years. But Ann Arbor hasn't been completely immune. Pfizer,..." In short, that's 100% accurate. There is one main reason Ann Arbor has the lowest unemployment rate and best real estate market in Michigan -- U of M. That said, Ann Arbor still has problems, a few caused by U of M (e.g., taking certain property of the tax roles) but most not (e.g., Pfizer leaving Ann Arbor had nothing to do with U of M and everything to do with Pfizer cutting back its global operations; other research facilities, not just in Ann Arbor, also closed). Plus, the commenter who talked about an education "bubble" - while there may be some truth to that overall, all education isn't the same. U of M is in an elite class and pretty much everyone -- Republican, Democrats, unaffiliated - agree that getting the best education you can is essential in today's economy and U of M literally draws people from all over the world b/c of its quality (as opposed to many of the other Michigan public univ which eventually could reach a pricing breaking point and have their "bubble" popped). U of M is far from perfect, but there's a reason U of M once again received a record amount (39,000+) applications this year: it's the place a lot of people want to be, and Ann Arbor, overall, is easily better for it. <a href="http://www.dailytribune.com/articles/2011/07/18/news/doc4e247afd9d4d8318889664.txt" rel='nofollow'>http://www.dailytribune.com/articles/2011/07/18/news/doc4e247afd9d4d8318889664.txt</a>
CynicA2
Thu, Jul 21, 2011 : 6:37 a.m.
UM's "bubble" will one day burst, too! Might just take a little longer. The only thing bigger than the brains at UM are the egos. If pride comes before a fall, UM better look-out below!
slug
Wed, Jul 20, 2011 : 12:43 a.m.
Other industries that have felt "insulated" in the recent past: Auto Wall Street Technology Real Estate Newspapers Universities can't be far behind - they're in line as one of the last engorged bubbles to be burst.
CynicA2
Wed, Jul 20, 2011 : 1:30 a.m.
Amen, brother. It'll be interesting to see what happens when online degrees become more popular than going off to school, and enrollment at bricks and mortar college starts declining because only the rich can afford to attend. Won't happen real soon, but it will happen, if current trends continue with respect to incomes (stagnant to down), costs (up and away!), and outcomes (All that hard work, and zillions in student loans, and still no job?!?). Kinda sounds like another Borders in the making!
Angry Moderate
Wed, Jul 20, 2011 : 12:06 a.m.
UMich is the lifeblood of this city, but its real estate addiction is eroding our tax base. Perhaps we can convince the U to contribute more towards the city services it consumes. My understanding is that it pays no property taxes on the space it rents out to private, for-profit businesses. We can also include U of M's commuting employees in our revenue stream by partially shifting from property taxes to income taxes.
Cash
Tue, Jul 19, 2011 : 11:08 p.m.
Well really, let's not put much stock in what one of Rupert Murdoch's rags reports. Ann Arbor is not doing well. Borders is not the first large business to leave. Look around. How much of the city map is gobbled up by tax-free NFPs? How's that working for AA? Pfizer leaves and UM takes over. Tax base disaster. Even when employment is considered....a lot of UM employees take 23 north every night. And of course the AnnArbor.com site, also known as the A2 Chamber of Commerce Gazette continues to say everything is great...and for every business that closes, laying off people and often owners losing life savings, it is reported that it's an great opportunity for something new. Boy that spin just burns me.
John B.
Thu, Jul 21, 2011 : 2:45 a.m.
Amen, sister!
worriedmom
Tue, Jul 19, 2011 : 10:17 p.m.
actually, UM is also having layoffs, though more quietly than EMU. So far, three people are gone from my (small) unit. And they are the three with the lowest salaries. Figures.
CynicA2
Wed, Jul 20, 2011 : 1:15 a.m.
... And they have been quietly restructuring their entire workforce for several years now. Just like any other big corporation, if you catch my drift.
a2phiggy
Tue, Jul 19, 2011 : 10:09 p.m.
Am I the only one in A2 who does not feel at all "insulated" by U of M's presence? Please help me understand how the increasing number of A2 residents who are under- or unemployed should be comforted by an entity that pays no taxes, drains City resources, and whose services are simply beyond most people's financial reach.
David Paris
Wed, Jul 20, 2011 : 12:05 a.m.
If you think that Ann Arbor would be better off without The U, then I suggest you take a one hour drive north to Flint. If, on the other hand you are just taking the University for granted, then you have more faith in our governor than I do. Don't look a gift horse...
Barb
Tue, Jul 19, 2011 : 8:53 p.m.
Well, it bums me out. And I am concerned about what will become of the store on Liberty.
nowayjose
Tue, Jul 19, 2011 : 9:26 p.m.
Uofm will buy it and take it off the tax base. Ill bet it's gonna be a sure thing.