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Borders bid dissolves after opposition from creditors, landlords
NEW YORK (AP) ' Borders Group is teetering on liquidation after an offer from a private-equity investor disintegrated.
Najafi Cos. offered $215 million for Borders in July, but creditors and landlords on Wednesday said in court filings that immediate liquidation was a better option since Najafi could liquidate the company as soon as it was acquired. Creditors asked Najafi to revise its offer to no avail.
On Thursday, Borders said it wouldn't seek approval for Najafi's bid in a hearing scheduled for 10 a.m. Another bidder could still step in.
Instead, it designated liquidation firms Hilco Merchant Resources and Gordon Brothers as the opening bid if no other bidders emerge.
Borders Group Inc., based in Ann Arbor, Mich., filed for bankruptcy protection in February, hurt by stiff competition from online booksellers and discounters.