Borders agrees to sell itself for $215 million
Borders has agreed to sell itself to private investment firm Najafi Cos. for $215 million, reports the Associated Press. The agreement, however, is tentative. From the AP:
Najafi, which owns the Book-of-the-Month Club, will also assume $220 million in debt. The agreement is tentative and what is known as a "stalking horse" bid for a company under bankruptcy protection. The bid will open an auction for the bookseller and its assets, so a higher bid is possible. 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. Najafi has been a speculative suitor for the Ann Arbor, Mich.-based company, although Borders has not previously confirmed any specific bidders.
Borders Group Inc. filed for bankruptcy protection in February.