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Borders’ would-be saviors have fallen away, and right now the only bid on the table is from the liquidators.
Last week, negotiations with Phoenix-based private equity firm Najafi Companies broke down due to creditors’ concerns that Najafi would simply liquidate remaining stores anyway. Yesterday’s 5 p.m. deadline for bids came and went, with Najafi “reluctantly” declining to bid.
According to the Wall Street Journal, Borders is in discussions with Alabama-based bookstore chain Books-A-Million and with some unidentified other parties as well. Borders Group President Mike Edwards also told the WSJ that the company “received some inquiries over the weekend.”
The auction is scheduled for tomorrow.
Borders declared bankruptcy in February, and has closed about a third of its stores. Around 400 stores remain open. They would be closed, and 11,000 employees laid off, if the chain liquidates.