Founded in 1971 by brothers Tom and Louis Borders in Ann Arbor, Michigan, Borders was bought by Kmart in 1992 and combined with Waldenbooks.Borders, which employs about 10,700 people, scrapped a bankruptcy-court auction scheduled for Tuesday amid the dearth of bids. Borders filed for bankruptcy-court protection in February. Borders scrambled unsuccessfully over the weekend to find other potential buyers who would keep the chain alive.
The chain's demise could speed the decline in sales of hardcover and paperback books as consumers increasingly turn to downloading electronic books or having physical books mailed to their doorsteps.
"It's a tragedy Borders didn't make it through."
"If shopping at your local Borders is part of your weekly routine, and then Borders is gone, you may end up doing something other than buying books."
Borders is closing its 399 remaining stores and 11,000 employees are being laid off. Yesterday’s deadline for new bids on Borders came and went, with Phoenix-based venture capital firm Najafi “reluctantly” declining to submit a new bid and liquidation firms Hilco and Gordon Brothers the only bidders left at the table. Borders filed for bankruptcy in February and has already closed about 200 stores. Borders chose Najafi Companies as its stalking-horse bidder. Deal Journal also has Edwards’ letter to Borders employees, which blames Borders’ bad end on “external forces.”
Borders Group to Submit Hilco and Gordon Brothers Proposal to Court for Approval
– Hilco and Gordon Brothers to purchase store assets of the business and administer liquidation process
– Borders extends gratitude to dedicated employees and loyal customers
“Following the best efforts of all parties, we are saddened by this development,” said Borders Group President Mike Edwards. Borders currently operates 399 stores and employs approximately 10,700 employees.
