The bookstore giant Borders Group Inc was granted an extension by a bankruptcy judge on Thursday to continue to put together its plan to exit Chapter 11 bankruptcy. Borders asked for an extension of 120 days in order to continue to negotiate for the sale of its stores. An attorney for Borders told the judge on Thursday that the market for selling its stores is much better than it was a few weeks ago. According to Reuters, the attorney told the judge that the company had received offers to buy some or all of the stores from multiple parties.
According to Reuters, Borders is currently negotiating to sell its remaining stores still in operation to a private equity firm, the Gores Group. If Borders was not granted the extension, it had until June 16 to come up with an exit plan. If Borders did not come up with an exit plan by June 16, other groups would be allowed to come up with a plan for reorganization or to purchase Borders.
Borders filed for Chapter 11 bankruptcy protection in February. The store has struggled to keep up with competitors whose business is mostly online. For example, Borders has struggled to compete with Amazon.com, much the way that Blockbuster struggled to compete with Netflix.
The Chapter 11 bankruptcy filing has given Borders the chance to reorganize their business and improve it for the long term. Borders now has 120 more days to come up with a plan to do so, which will likely include plans to sell its stores. Borders is also working on a plan to replace Seattle's Best Coffee shops in its stores with its own coffee shops.
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