Borders has confirmed that it will submit the proposal from a consortium of liquidators led by Hilco and Gordon Brothers to bankruptcy court on Thursday. If approved, as expected, going-out-of-business sales will begin under a phased rollout at stores and facilities starting Friday. The sales will continue until the end of September. No auction is necessary, because the retailer did not receive a formal proposal for a going concern bid.
“We are saddened by this development,” said Borders Group president Mike Edwards. “We were all working towards a different outcome, but the headwinds we have been facing for quite some time, including the rapidly changing book industry, e-reader revolution, and turbulent economy, have brought us to where we are now.”
Because Borders intends to liquidate under Chapter 11, it says that it expects to pay vendors for all expenses incurred during the bankruptcy cases.