Borders likely to request approval for sale later this month, lawyer tells bankruptcy court
Ann Arbor-based Borders Group Inc. is likely to ask for approval to sell most of the company's remaining stores later this month, a lawyer for the bookstore chain told a bankruptcy judge at a court hearing this morning in New York, according to the Wall Street Journal.
It's not clear how a sale of Borders Group Inc. would affect the company's Ann Arbor headquarters and the close to 400 employees who work there.
Melanie Maxwell | AnnArbor.com
The news comes after WSJ reported Wednesday that Los Angeles-based private equity firm Gores Group is considering a bid for Borders, which filed for Chapter 11 bankruptcy in February.
The WSJ reported that Andrew K. Glenn, a lawyer for Kasowitz Benson Torres & Friedman, which is representing Borders in bankruptcy, said "expects to file a motion to sell the company within two to four weeks, but 'hopefully two.'"
It's not clear whether an acquirer of Borders would maintain the company's Ann Arbor headquarters, which employs close to 400 workers.
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
Comments
A2Realilty
Fri, Jun 3, 2011 : 1:36 a.m.
Nathan - Do you know if a sale would trigger the bonus payouts to the executives? Thanks in advance if you can determine the answer.
CynicA2
Thu, Jun 2, 2011 : 6:46 p.m.
"It's not clear whether an acquirer of Borders would maintain the company's Ann Arbor headquarters, which employs close to 400 workers." It may not be clear, but the odds don't seem to favor it. What I want to know is whether or not the current management gets to collect those fat bonuses if this deal goes through. I'm guessing they do, so this is their endgame and off they go, and the guy in CA gets to step-up and roll the dice. What a country!