Nearly five months after filing for Chapter 11 bankruptcy protection, the once huge chain of Borders bookstores has finally found a private investment firm willing to buy it for $215 million. Alas, the buyer would also be assuming $220 million in debt from the busted bookseller.
However, while the deal has been agreed to, it’s not yet set in stone. The AP explains:
The agreement is tentative and what is known as a “stalking horse” bid for a company under bankruptcy protection. The bid will open an auction for the bookseller and its assets, so a higher bid is possible.
The deal will go before a bankruptcy court judge on July 21. At that point, the court will either give the ok to the auction or Borders will move to liquidate.
The investment firm, Najafi Companies, bought Book-Of-The-Month Club and other flailing properties from Bertelsmann and Time Warner in 2008.
Borders agrees to sell itself for $215 million [Chicago Tribune]