Monday, July 18, 2011

It's all over for Borders: auction fails to generate any interest, so company announces it will liquidate itself

Admitting that their attempts to generate bids had failed, book retailers Borders said this afternoon that it would sell itself to a group of liquidators.
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According to AnnArbor.com, the group is led by Hilco Merchant Resources and Gordon Brothers Retail Partners LLC. The liquidation could begin as early as this Friday. 400 stores, and up to 11,000 employees will be effected by the action. Borders, which is currently in bankruptcy will see court approval for its actions at a hearing on Thursday.

"We are saddened by this development," Borders President Mike Edwards said in the statement. "We were all working hard toward a different outcome, but the headwinds we have been facing for quite some time."

“For decades, Borders stores have been destinations within our communities, places where people have sought knowledge, entertainment, and enlightenment and connected with others who share their passion. Everyone at Borders has helped millions of people discover new books, music, and movies, and we all take pride in the role Borders has played in our customers’ lives,” Edwards said.

Oddly, the choice to liquidate follows an attempt to reach a deal with buyout firm Najafi Cos, which would have been willing to pay $435 million, according to Reuters. But an attorney for Borders put the estimated liquidation sales price at between $250 and $284 million.

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