Borders' brand name, website could live on through sale
You may still be able to shop at Borders after the bookstore chain's liquidation ends — but not at a physical store.
Borders is asking the U.S. Bankruptcy Court's Southern District of New York to allow the company to pursue the sale of its brand name, website and other intellectual property assets.
The company's fate is beginning to look lot like that of Circuit City, the defunct electronics retailer that liquidated three years ago. Circuit City no longer operates any physical stores, but its website was sold and is still operational.
The company said the sale of its IP assets "should garner significant interest from potential bidders" and, in fact, have already attracted "multiple inquiries."
At the time of its Chapter 11 bankruptcy filing in February, online sales made up only about 3 percent of Borders’ total revenue.
The bookstore chain has more than 40 million members of its Borders Rewards program, a loyalty program through which the company distributes coupons and various communications.
Borders asked the court to approve bidding procedures that would govern the auction of its IP assets. Under the company's proposal, procedures would be approved at a hearing Aug. 10, and the company wants to hold an auction Sept. 14.