Will Eureka's Borders Bookstore Close?
Will the Eureka Borders soon close? A Wall Street Journal post declared that the well-known bookstore chain may collapse after a deal with ” a private-equity investor fell apart late Wednesday.”
The development raises the prospect that Borders will soon close all its remaining 399 stores and go out of business. No other suitors have so far emerged for Borders ahead of a Sunday bidding deadline.
Borders’s deal with the investor, Jahm Najafi, unraveled Wednesday after publishers and landlords owed money from the company complained that his bid would allow him to liquidate the bookstore chain after buying the business…
Time was running short, with Borders set to address a bankruptcy judge early Thursday to seek approval of Mr. Najafi’s bid and procedures for an auction next week. The bookstore chain pivoted to anointing liquidators as the opening bidders in the auction, set for Tuesday.
In a letter to employees Wednesday, Borders President Mike Edwards said that Mr. Najafi had withdrawn his bid and that liquidators were now circling the company. He told employees he remained hopeful other suitors would emerge to keep Borders in business before next week’s auction….
Borders filed for bankruptcy protection in February and has since been bleeding cash and closed more than a third of its stores. Amid mounting losses, the bookstore chain put itself up for sale in a last-ditch attempt to survive.