GWOP Report: Border’s sold to Investment Firm for $215 Million

via CBS

Ann Arbor, MI -based bookseller Borders Group, reorganizing under Chapter 11 bankruptcy protection since February, has agreed to be purchased by Phoenix-based Najafi Cos.

The reported sale price is 215 million dollars, with Najafi assuming another 220 million dollars in debt.

Najafi owns the Book-of-the-Month Club, Doubleday Book Clubs and Columbia House.

The tentative agreement is known as a “stalking horse” bid, meaning a higher bid is possible at auction.  A federal bankruptcy judge has set a hearing date of July 21. Borders filed a motion to liquidate if the court does not approve an auction.

Borders, headquartered in Ann Arbor, began as a single store in 1971 and has grown to become the country’s second-largest brick-and-mortar bookseller after Barnes and Noble.

Borders has closed hundreds of stores since declaring bankruptcy and now operates about 400 outlets.