The Charlotte Observer reports the following story from its Monday, July 18, 2011, edition. For the complete story visit: http://www.charlotteobserver.com/2011/07/18/2463676/borders-fate-to-be-decided-this.html#storylink=misearch

Borders’ Group made a move on Monday to liquidate its assets and close its remaining 399 stores. The move could come as soon as this Fridy. Failing to receive any bids to keep it in business, the Ann Arbor, Mich.-based chain, has sought court approval to sell off its assets.

Hilco Merchant Resources and Gordon Brothers Group lead the way as possible liquidators. Borders will head to U.S. Bankruptcy Court on Thursday. If the judge approves the move, liquidation sales could start as soon as Friday; the company could go out of business by the end of September. (Although the news says the local stores may stay open through January, my October book signing at the local Borders, obviously, is in jeopardy. When the events coordinator asked me to bring my own books to the signing, I knew I was in trouble, but I hoped, against hope, that this might not be the outcome for Borders.)

Creditors and lenders recently objected to Najafi Cos.’s $215 million bid to take over the company. They argued the chain would be worth more if it liquidated immediately.

With 10,700 current employees, Borders liquidation could have far-reaching effects. The most obvious is the loss of jobs, but retail spaces will feel the loss, as well. Borders stores average about 25,000 square feet.

“Borders’ move to close 228 stores while it reorganized in bankruptcy protection already increased the collective vacancy rate of shopping centers that contained a Borders to 9.3 percent from 4.2 percent, estimated Chris Macke, senior real estate strategist at CoStar Group, the nation’s largest provider of real estate data. Macke calculated the liquidation of the rest of the chain could increase the vacancy rate on that same basis to 18.8 percent.”

“Additionally, Simba Information senior trade analyst Michael Norris predicts the closing could cause sales of electronic books to fall. Borders, for one, entered the electronic book market with Canada’s Kobo Inc. last year. Owners of the Kobo e-reader will still be able use Kobo software to buy and read books. And Kobo officials said users of Borders e-book accounts, which began transitioning to Kobo in June, will be able to access their e-books uninterrupted.”

“At its peak, in 2003, Borders operated 1,249 Borders and Waldenbooks, but by the time it filed for bankruptcy protection in February that had fallen to 642 stores and 19,500 employees. Since then, Borders has shuttered more stores and laid off thousands.”