The Gores Group is in talks to buy more than half of the remaining stores of bankrupt bookseller Borders Group Inc., Reuters reported, citing a story in the Wall Street Journal. Borders, which filed for Chapter 11 bankruptcy protection in February, would be able to continue operating as a going concern, Reuters wrote. Since filing for bankruptcy, Borders has closed about 225 of its 500 stores.
(Reuters) – Private equity firm Gores Group is in talks to buy more than half of bankrupt bookseller Borders Group Inc’s (BGPIQ.PK) remaining stores, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
Borders, which filed for Chapter 11 bankruptcy protection in February, would be able to continue operating as a going concern, according to the report.
A Borders spokeswoman declined to comment and a representative for Gores Group did not immediately return a request for comment.
Before the bankruptcy filing, Borders operated more than 500 namesake superstores, as well as the Waldenbooks chain of smaller bookstores.
Borders contended with years of declining book sales in the years leading up to its bankruptcy filing. It has so far closed about 225 of its 500 superstores.
Other suitors are also talking with Borders, the Wall Street Journal’s sources said. Liberty Media Corp.’s recent bid for Barnes & Noble Inc (BKS.N) renewed interest in Borders, according to one of the Journal’s sources.
The case is In re: Borders Group Inc, U.S. Bankruptcy Court, Southern District of New York, No: 11-10614. (Reporting by Phil Wahba; Editing by Gary Hill)