Borders Out, Walgreens In

Jasmine Kupihea and Quelyn Nihipali

The sudden shut down of Borders at the Waiakea Shopping Center has been a shock to the community as well as the employees that work there. At the beginning of July, Borders announced they would be closing at the end of the month. Since then, huge signs hanging off the building and people standing on the street corners holding placards have drawn bargain hunters in to the store. Sales of anywhere from 20-40 percent off have left some excited and others nonplussed; hopes linger that prices will hit rock bottom as the month comes to an end.

Another thing costumers and employees have in common when it comes to the closure is confusion about why it happened at all. Workers there say that as many as 15 customers a day come in questioning them, only to learn they are just as clueless.

Although Borders reported a $33.5 million loss during the first quarter, our sources at the Hilo store said this location was doing really well. Borders is now set to close on August 21 and needs to be vacated by September 7.

Many people in the community are speculating that Borders is leaving because of a rent hike. Last year, the bookstore’s neighbor Island Naturals had to pack up and move for that very reason, which might explain why people are jumping to that conclusion. Island Naturals owner Russell Ruderman told Youth News he likes his new location better, claiming it is more convenient. Judging by the activity at the store, his customers have remained loyal.

Borders corporate spokeswoman, Mary Davis told Youth News the company “is not renewing its lease at Waiakea Shopping Center because it failed to meet business objectives.” While it might be hard to decipher that message, our sources told us the closure had nothing to do with a rent increase. Another anonymous source reported that the rent jumped to $60,000/month.

About 40 employees were affected by the shut down. Some of them are having a difficult time coping with the loss, another sentiment shared with the community. As laid off workers scramble for jobs, locals who frequented the store wonder where they will find a cozy corner to enjoy some free time.

Kahana Albinio is the DHHL property development agent for the land where Borders is located. He explained that DHHL is the landowner and they leased the site to Waiakea Center, which in turn is managed by CB Richard Ellis. CB Richard Ellis did not return our calls for comment, but Albinio did explain that while DHHL is involved in the original agreement with all companies renting at the center, once a tenant has occupied the space any changes, such as a rent increase, do not involve DHHL. CB Richard Ellis is responsible for the terms and the agreements with their sub-lessees. Albinio also said that Walgreens will be occupying the space once Borders leaves.

Chatter amongst the crowded store had a feeling of disappointment. Store patron Kara Dunn said, “Now where am I going to get my books”? The Hilo community will miss Borders.