Borders: Latest bookseller to sell up

1st July 2011

The latest victim is second largest book store chain Borders Group , which has agreed to sell itself to private investment firm Najafi for $215m (£135m) and is seeking court approval for the agreement, reports the Guardian.

Najafi, which owns the Book-of-the-Month Club, will also assume $220m in debt.

The agreement is tentative, adds the report.It is known as a "stalking horse" bid for a company under bankruptcy protection. The bid will open an auction for the company and its assets, so a higher offer is possible.

On July 21 there will be a bankruptcy court hearing on the deal after Borders filed for bankruptcy protection in February.

Najafi has been a speculative suitor for the Michigan-based company, although Borders has not previously confirmed any specific bidders.

Sales from high street book stores have been damaged by tough competition from online booksellers and discounters and a harsh economic climate.

Borders said in a statement that a sale provides the "best path forward to reposition the business for a successful future and to maximize value for the company's stakeholders."

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