NEW YORK (AP) - Borders Group is seeking court approval to liquidate its 399 stores after it failed to receive any bids that would keep the 40-year-old chain in operation and canceled an auction process.
Liquidation sales could start as soon as Friday. The U.S. Bankruptcy Court of the Southern District of New York is set to approve the move on Thursday
In a statement, Borders President Mike Edwards said the changing book industry and the economy hastened the chain's demise.
Borders had been seeking a new white knight bidder after a $215 million bid by private-equity firm Najafi Cos. dissolved late last week. Creditors and lenders argued the chain would be worth more if it liquidated immediately.
Hilco Merchant Resources and Gordon Brothers Group will liquidate the chain under terms of the agreement.