Borders Group Inc has won bankruptcy court approval to liquidate.
According to court documents, as many as 35 of the company’s stores could continue to operate as bookstores in some form if a last minute agreement with Books-A-Million Inc. can be reached. In court Thursday, Borders attorney Andrew Glenn said the two sides were still talking, but no agreement had been reached. The potential deal could save as many as 1,500 jobs.
A group of liquidators led by Hilco Merchant Resources and Gordon Brothers Retail Partners will sell off Borders’ merchandise and furniture. The process will likely be started Friday and be completed by September, according to the court filing.
Under the liquidation plan, Borders will keep the rights to its brand name and leases and hold separate auction processes for those assets. Gordon Brothers unit DJM Realty will market the leases.
The agreement would likely yield between $250 million and $284 million that the company can use to pay back creditors.
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