Borders finds no buyer, moves toward liquidation
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Borders is seeking court approval for a liquidation plan for its remaining brick-and-mortar bookstores after failing to receive any bids that would allow the company to continue its operations.
The Wall Street Journal has this Associated Press report:
Liquidation sales could start as soon as Friday. The U.S. Bankruptcy Court of the Southern District of New York is set to approve the move on Thursday In a statement, Borders President Mike Edwards said the changing book industry and the economy hastened the chain’s demise. Borders had been seeking a new white knight bidder after a $215 million bid by private-equity firm Najafi Cos. dissolved late last week. Creditors and lenders argued the chain would be worth more if it liquidated immediately.
In its march to Chapter 11 bankruptcy and beyond, the company closed more than 200 stores, leaving 405 in operations, according to Bloomberg. The Associated Press, however, counts 399 stores still operating under the Borders banner.
All 400-some stores stand to be liquidated, upon court approval of the process. The Associated Press reports that Hilco Merchant Resources and Gordon Brothers Group will liquidate the chain under terms of the agreement.
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-- Carolyn Kellogg
