News
Borders Bookstore Chain to Shut Down (Updated)
posted on by Crystalyn Hodgkins
The Wall Street Journal is reporting on Monday that the U.S. bookstore chain Borders will liquidate after receiving no other bids to buy out the company. Borders currently has 399 stores still open, and employs approximately 10,700 people. According to the article, liquidation of the stores could start on Friday. Borders Group Inc. said it expects to be completely out of business by the end of September.
Borders Group President Mike Edwards said in a statement, "we were all working hard toward a different outcome, but the head winds we have been facing for quite some time, including the rapidly changing book industry, eReader revolution, and turbulent economy, have brought us to where we are now."
Publishers Weekly had reported earlier on Monday that the company did not receive any other bids by the Sunday deadline, leaving only a consortium of liquidators likely to bid on the company on the originally scheduled auction on Tuesday. Borders Group Inc. canceled the Tuesday auction, and will ask a judge on Thursday to approve the sale to the liquidators, which are led by Hilco Merchant Resources and Gordon Brothers.
On Wednesday Borders removed the offer made by BB Brands (owned by Najafi Companies) and replaced it with a rival bid by the liquidators. Borders was the nation's second-largest bookstore chain.
Update: More background information added.
Update 2: Press release link added.
[Via Heidi MacDonald]
this article has been modified since it was originally posted; see change history