Borders Group, Inc. (PINK:BGPIQ), a Michigan-based book-selling store is likely to liquidate 10 of its stores in Georgia very shortly.
Borders Group, the second best bookseller of the nation did not receive any additional bids till Sunday. So the company on monday send a letter to the court asking for the approval to liquidate its business as they were insolvent.
According to the Wall Street Journal the auction to be held today for the bidders showing their willingness to keep Borders open for business has been canceled.
Borders in a statement announced that it will be closing down around 399 stores very soon as the Liquidation procedure is to be completed by September.
The company, employing around 11,000 people, has not generated any profit since 2006.
Liquidators after selling off the company’s asset could yield around $252 million to $284 million.
The Pioneer superstore, filed for bankruptcy protection in February, and closed down five of its stores in Atlanta-area locations, but was sunk by crushing debt and sluggishness in adapting to a rapidly changing industry.
The 40-year-old company owed tens of millions of dollars to publishers which included $41.1 million to Penguin Putnam, $36.9 million to Hachette Book Group, $33.8 million to Simon & Schuster and $33.5 million to Random House.
Borders apart from this had many internal loopholes;-
The company’s failed to cop up with the growing importance of the Web and electronic books and it did not react quickly to declining music and DVD sales, further to this it hired four CEOs in five years.
According to Nielsen the company recorded a Sale which fell by 5% in 2010 to 717.8 million from 751.7 million last year , which tracks about 70% of book sales but doesn’t include Walmart stores.
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