ANN ARBOR, MI-Borders Group has officially reached its last chapter of life – the company announced just hours ago that it will submit to a liquidation plan. The firm has 399 stores and about 10,700 employees.
The company announced in February that as part of the Chapter 11 bankruptcy it would close more than 225 stores countrywide, about 30% of its total 642 stores in the US and Puerto Rico. The firm tried to find a buyer, and as of June 30 had an agreement with Najafi Cos. to save the firm, but the deal collapsed last week.
Today was the deadline for the firm to find a buyer. According to a statement by company President Mike Edwards, the firm will now submit to the court for the proposal by Hilco and Gordon Bros. to purchase the store assets of the business and administer the liquidation process.
Edwards said in the statement that firm officials are saddened by the failure. “We were all working hard toward 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.
After court approval, liquidation will start for some stores and facilities as soon as Friday. All stores are expected to close by Oct. 1. The company expects to be able to pay vendors in the ordinary course for all expenses incurred during the bankruptcy cases. Various landlords of borders stores throughout the country have been working to re-tenant or sell the properties.
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