Hoped-For July Borders Sale Would Avoid 40 Store Closings

Bankrupt Borders hopes to name a "stalking horse" bidder, or preferred bidder, by July 1 and avoid closing 40 stores. If the bookseller is unsuccessful in selling itself to a bidder that wants to keep the company as a going concern, Borders said it will sell itself to liquidators.
The company filed court papers last week saying it is in discussions with several potential bidders and is looking to complete the sale of all its assets by the end of July. According to published sources, Borders has been in discussions with private-equity firms Gores Group and Najafi Cos. on possible bids for the chain.
Borders also said a financing condition was amended that required it to close 40 of its approximately 400 remaining stores because it had not reached lease-extension agreements with landlords. If a sale does not occur by the end of July, Borders will close the 40 stores.
Borders asked the bankruptcy court to hold an auction on July 19 and a sale hearing by July 22. It plans to close the sale on or before July 29.
For related content: Borders Seeks Buyer as Bankruptcy Judge Extends Restructuring Deadline
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