Borders Faces Liquidation After Deal CollapsesNow this, from tonight's Email...
Bankrupt Borders is on the brink of liquidation after the collapse of a deal with the Najafi investment firm aimed at saving the bankrupt company. Earlier this month Borders designated Najafi as the opening bidder in a looming bankruptcy court action, but according to published reports, the deal fell through because of objections by publishers and landlords.
The Najafi group offered $215 million for Borders and an assumption of $220 million in liabilities, but a creditors committee said an offer of $252 million from a liquidators' group amounted to a better deal. The book chain has since appointed the liquidators as the opening bidders in the auction set for Tuesday.
Borders President Mike Edwards confirmed that Najafi had withdrawn its bid and liquidators were circling, while expressing hope that other bidders would emerge to save the company.
Borders will likely have to close its remaining 399 stores, lay off approximately 11,000 people and go out of business. Borders shut down 200 locations since it filed for bankruptcy in February.
H/T Anupam.
Update: This morning, it looks like it's all over.
1 comment:
As one of my former Management Consulting cohorts noted, if you weren't making enough in the first round to keep a store in Paramus open, the second round was going to be even uglier than your "Business Model."
Short any non-sinecured (read:financial services firm) company that hires Borders management or has more than one Director in common with them. Free money.
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