Borders Agrees to Sale for $215 Million
ANN ARBOR, Michigan(TheStreet) -- Borders, the bankrupt bookseller, reached an agreement to sell itself to Direct Brands, a portfolio company of private investment firm Najafi Cos., for $215.1 million.
Borders, in a press statement, said it plans to seek court approval for the agreement, which will serve as a "stalking horse" bid for the company.
"Borders believes a sale provides the best path forward to reposition the business for a successful future and to maximize value for the company's stakeholders, the company said.
Direct Brands also will assume $220 million in debt. Najafi bought Direct Brands, the owner of Book-of-the-Month Club, Doubleday Book Clubs and Columbia House, in 2008.Borders said the tentative purchase agreement will occur before a court hearing on July 21. Najafi's firm beat out private-equity investor, Alec Gores, for the "stalking horse" bid for Borders, according to reports. -- Written by Joseph Woelfel
>To contact the writer of this article, click here: Joseph Woelfel >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV