Border’s, a large book chain with stores across the country could be closing its door’s forever if an investor doesn’t step in by July 18th.
Border’s Group Inc. filed for federal bankruptcy protection in February. The chain was hoping to take on a loan from Phoenix investment group, Najafi Cos, but the negotiations fell through. Creditors felt the investment group would liquidate the bookseller’s assets to generate a profit. Najafi offered to buy the chain for $215 million and take on $220 million in debt. If the chain doesn’t find a bid the creditors can agree upon they could disappear altogether.
A bankruptcy attorney may advise some clients that liquidation is the best way to settle their debts.
The creditors said that two other liquidating firms had placed better offers, and they will stand to lose less. In bankruptcy courts creditors will often agree to a reduced debt repayment. Offers from Hilco Merchant Services and Gordon Bros. are closer to $252 million.
At its height, Border’s , who also operated Waldenbooks, had close to 1,500 stores nationwide, but after they filed for bankruptcy that number dwindled to 400.
Declaring bankruptcy isn’t an easy choice to make. The counsel of a bankruptcy lawyer can tell a person what will work best for their circumstances. The various ways to restructure debt can be confusing, but bankruptcy attorneys have enough expertise to determine the best way to erase debt.
