I wouldn't place much stock in the author's blog.
I've never heard of a company telling employees "things are bad, start looking for work," no matter how dire the situation. They could be prepping to lay off half the company and they'd still say "things are looking up!"
It's unlikely Borders would go straight to Chapter 7 anyway, 11 (reorg) seems much more likely, and they'll need staff to try and rebuild their business.
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