Consumer Confidential: Borders goes bankrupt, Netflix users targeted, bassinet recall
--Borders is bankrupt. The company has filed for bankruptcy protection and says it will close nearly a third of its outlets. According to Reuters, the long-expected Chapter 11 filing will give the second-largest U.S. bookstore chain a chance to fix its finances and shrink its business at a time when buyers are increasingly going online for their literary needs. Analysts say Borders' struggles may only have a modest benefit for rival Barnes & Noble, which needs to focus on its efforts to win more of the growing e-books market. Borders started out in 1971 as a small chain of bookstores in Michigan. It pioneered the concept of superstores in the early 1990s along with Barnes & Noble, but has struggled to adapt to sweeping technological changes.
--The classic phishing scam has a new face, and it's targeting Netflix subscribers. Buckets of spam are pouring into people's inboxes disguised as e-mail warning Netflix subscribers that their credit card is about to expire. It provides a link to update your billing info. That link, of course, takes you to scam central, where fraudsters await your credit card number and other personal information. "This is an example of the types of phishing scams our office sees on a regular basis," says Mississippi Atty. Gen. Jim Hood. "Consumers are urged not to comply with this or similar e-mail requests and to use caution when opening e-mails or downloading documents from unfamiliar sources."
--Heads up: About half a million baby bassinets made by Burlington Basket Co. are being recalled because of concerns that they could collapse if not assembled properly. The recall involves about 500,000 bassinets, all made by the company before June of last year. The Consumer Product Safety Commission says the bassinets can collapse if the support rails that hold the basket are not fully locked into place. Two infants have been injured in incidents involving the bassinets. However, Burlington isn't offering to take back the products, but is instead giving consumers free repair kits. More info can be obtained by calling the company (800) 553-2300.
-- David Lazarus
Photo: Borders has filed for bankruptcy protection. Credit: Gary Friedman / Los Angeles Times