NEW YORK — There will be no storybook ending for Borders. The 40-year-old book seller could start liquidating its 399 remaining stores as early as Friday.
The Ann Arbor, Mich.-based chain, which helped pioneer the big-box bookseller concept, is seeking court approval to liquidate after it failed to receive any bids that would keep it in business. The move adds Borders to the list of retailers that have failed to adapt to changing consumers’ shopping habits and survive the economic downturn, including Circuit City, Blockbuster and Linens ‘N Things.
On Thursday, Borders is expected to ask the U.S. Bankruptcy Court of the Southern District of New York at a scheduled hearing to allow it to be sold to liquidators led by Hilco Merchant Resources and Gordon Brothers Group. If the judge approves the move, liquidation sales could start as soon as Friday. The company could go out of business by the end of September.
Borders’ attempt to stay in business unraveled quickly last week, after a $215 million “white knight” bid by private-equity firm Najafi Cos. dissolved under objections from creditors and lenders.
“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, e-reader revolution, and turbulent economy, have brought us to where we are now,” said Borders Group President Mike Edwards in a statement.
Borders liquidation could have far-reaching effects, putting thousands of people out of work at a time of high unemployment. The chain currently has 10,700 employees.
