Borders, also known as that bookstore that isn’t Barnes & Noble, will be closing their 399 remaining stores and laying off about 11,000 employees after yesterday’s deadline for new bids for the chain came and went, leaving only liquidation firms Gordon Brothers and Hilco as the only bidders. Borders filed for bankruptcy in February, but as one may have guessed from the above news, the attempts to keep the chain alive didn’t go well, with Borders only receiving their first bid last month.
Borders will now ask a judge to approve the sale to a liquidation firm, and Borders predicts their going-out-of-business sales at their remaining stores could begin as early as Friday, with the whole ordeal wrapping up around September. Goodbye, sweet bookstore prince that confused us by being the other “b” bookstore. Read on below for Borders’ release.
Borders Group to Submit Hilco and Gordon Brothers Proposal to Court for Approval
– Hilco and Gordon Brothers to purchase store assets of the business and administer liquidation process
– Borders extends gratitude to dedicated employees and loyal customers
Ann Arbor, July 18, 2011 — Borders Group reported today that, in accordance with the terms of its financing agreement, the Company will submit to the Court for approval the previously-announced proposal from Hilco and Gordon Brothers to purchase the store assets of the business and administer the liquidation process. Borders said that, in the absence of a formal proposal from a going concern bidder, it did not require an auction prior to presenting the proposal to the Court at a scheduled hearing on Thursday, July 21, 2011.
“Following the best efforts of all parties, we are saddened by this development,” said Borders Group President Mike Edwards. “We were all working hard towards a different outcome, but the headwinds 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,” he added.
“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 continued, “I extend a heartfelt thanks to all of our dedicated employees and our loyal customers.”
Borders currently operates 399 stores and employs approximately 10,700 employees. Subject to the Court’s approval, under the proposal, liquidation is expected to commence for some stores and facilities as soon as Friday, July 22, with a phased rollout of the program which is expected to conclude by the end of September. Borders intends to liquidate under Chapter 11 of the Bankruptcy Code and, as a result, Borders expects to be able to pay vendors in the ordinary course for all expenses incurred during the bankruptcy cases.
(paidContent via Techmeme)
