Update from Borders: IB Times reported today that Direct Brands, a portfolio company of Najafi, will purchase Borders' assets for $215.1 million (in addition to assuming roughly $220 worth of liabilities).According to the article on IB Times Borders agreed to the deal, a "stalking horse bid," after considering two offers, and the Ann Arbor, Mich.-based company plans to seek approval from the bankruptcy court.
So who's the buyer? MarketWatch reported that Direct Brands includes Book-of-the-Month Club, Doubleday Book Clubs, Columbia House DVD and BMG Music Service. It was bought by Phoenix, Ariz.-based Najafi in 2008.
Chicago Tribune wrote that a bankruptcy court hearing on the deal is set for July 21. If the court does not approve an auction process, Borders filed a separate motion to liquidate.
What does this purchase mean for the future of Borders and the future of bookstores in general? We'll keep you posted once more information on the deal will be disclosed so stay tuned.
Yours,
Raz @ Eco-Libris
Eco-Libris: Planting trees for your books!
