Things are so bad for Borders that the company can’t even seem to fail properly. A U.S. Bankruptcy Court judge threw a hurdle in front of the proposed $15.8 million sale of intellectual property to Barnes & Noble, demanding that paperwork must clarify privacy rights for 48 million customers whose data will be swapped in the transaction.

Bloomberg reports the judge, responding to concerns brought up by the Federal Trade Commission’s Bureau of Consumer Protection and dozens of state attorneys general, asked whether Borders has the ability to email all customers and notify them of their rights to opt out of the data sale. The Borders lawyers said they hadn’t thought of that prospect.

The judge gave the lawyers more time to figure things out, scheduling the next hearing for Monday.

Borders Intellectual Property Sale Delayed By Privacy Issue [Bloomberg]

Previously: 14 Borders Stores To Be Reborn As Books-A-Million

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.