Found this post about why Borders, but not Barnes and Noble, is bankrupt.

“Failure to adequately address the internet sales channel and the subsequent ebook market. Specifically, the decision to outsource Borders.com to Amazon.com. To be fair, Borders.com was costing the company millions of dollars in losses each year ($20m I think when they decided to outsource) and one could argue that the outsourcing solution was a case of letting the most efficient etailing organization (Amazon.com) handle the job and turn a big negative into a profitable business. In the short-term, this saved a lot of money. In the long run, the internet is too important to outsource in this manner” – Mark Evans