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Book is almost closed on Borders; Letter from CEO

Isn’t this story getting old?

Even if it is, it’s apparently not over yet.

Memphis may be losing another bookstore. Borders, which still operates one of its giant shops near Germantown, is on the verge of a complete liquidation of the book chain.

That’s according to a story in Thursday’s Wall Street Journal. A deal to save the company has apparently fallen through.

The chain’s president sent this letter to employees Wednesday:

“As you know, we have been working towards a successful sale of the Company and I wanted to take this opportunity to update you on the latest developments. Under the previously announced sale process, Borders had two alternate options for a Stalking Horse bidder: the Najafi proposal, or a group including Hilco and Gordon Brothers, who would purchase the store assets of the business and undertake an orderly wind-down. Late this afternoon, Najafi informed us that they have decided to withdraw as the stalking horse proposal, and therefore we will submit the Hilco and Gordon Brothers proposal to the Court for the purposes of serving as the Stalking Horse bidder at the auction next week.

While we regret Najafi’s withdrawal as the Stalking Horse bidder, we remain hopeful that they or other potential bidders who are interested in operating Borders as a going concern will choose to participate in the auction process on July 19.

In the meantime, as the process moves forward, we will continue to conduct business as usual. Our stores remain open, and Borders.com is fulfilling orders as usual. It’s important that we all stay focused recognizing that media speculation will no doubt continue.

I am tremendously proud of all of you and your commitment to Borders. Your dedication is making an important difference, and we are beginning to see a positive impact from the changes we are making. Thank you for all you are doing.

Mike”

Dansette

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