Borders stores begins final liquidations
If you’ve been waiting for the optimal time to start buying those paperback and hardcover books that you’ve had in your shopping cart for the last six months, you may want to start crossing those titles off of your list starting this weekend. A federal bankruptcy judge has approved Borders Group Inc.'s plan to liquidate, with going-out-of-business sales set to begin at some of its 399 remaining locations on Friday.
And to throw a talespin at the very last moment, Books-A-Million Inc. wants to buy about 30 of the Borders stores. A deal to sell some stores to that chain could save about 1,500 jobs, according to a Borders lawyer; Borders has 10,700 employees who will be let go as the liquidation comes to an ened. Books-A-Million would buy the merchandise and fixtures from the selected Borders from the liquidators and negotiate to assume the leases on those locations.
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Judge Martin Glenn of the U.S. Bankruptcy Court of the Southern District of New York approved Borders' plan to appoint liquidators led by Hilco Merchant Resources and Gordon Brothers Group to sell off its assets. The book chain retailer had been trying to reorganize itself under Chapter 11 bankruptcy protection from creditors. The company closed hundred of stores in the past year in an effort to cut costs and streamline operations.