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They are not all closing. In Ann Arbor, where their headquarters is, they had three stores. One is closing but the other two are still open. I'm local and I haven't heard any rumors of the remaining two closing. They're doing the re-org thing, and they're certainly struggling, but they're not out yet.
Also, Borders gets their ebooks from Kobo, which is another company and isn't in trouble. So even if Borders goes away your gift recipient should be able to get books from Kobo.
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