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Last Minute Books-A-Million Bid for Up To 35 Borders Stores
posted on by Andrew Osmond
The industry news source Publishers Weekly reports that Books-A-Million is interested in purchasing 30 to 35 Borders stores (including more than 20 superstores) as the latter chain liquidates. Publishers Weekly claims such a move "would save 1,000 to 1,500 jobs." (Without such a move, nearly 11,000 rank-and-file employees will lose their jobs during the coming weeks.)
Another industry source, Bloomberg, added that seven of the stores that Books-A-Million is interested in are in Pennsylvania. The chain is also interested in super-stores in Atlantic City, New Jersey, and Waterford, Connecticut.
Under the proposal, BAM would purchase the stores and additional inventory as a bulk sale through Borders's liquidators, paying a percentage of cost value. However, the bankruptcy judge wrote in a court order that a sale TO Books-A-Million could take place "only with the express written consent of the debtors, the committee and the agent," and that consent "may be withheld for any reason."
The judge also said he would enter the sales order for Borders's liquidation and going-out-of-business sales, which are due to start today. Borders's intellectual property (its name, website, and customer list) and its shares in Kobo have yet to be sold, as the DIP lenders want a final order that pays them off.
Source: Publishers Weekly, Bloomberg
