A2: Borders

The Detroit News is among many media outlets reporting that Borders Group, the Ann Arbor-based bookstore chain, is going out of business. According to the report, a Tuesday auction for potential buyers has been cancelled. At a Thursday hearing, Borders will present to bankruptcy court its proposal for selling the business to a consortium of liquidators led by Hilco Merchant Resources and Gordon Brothers Group. A going-out-of-business sale could start as early as Friday. About 400 people work at Borders headquarters in Ann Arbor. [Source] Editor’s note: Richard L. Kaye, Hilco executive vice president, emailed The Chronicle on July 19 and stated that a press release issued by Borders Investor Relations, which the Detroit News article referenced, is inaccurate. Kaye writes: ”In fact, Hilco and the other liquidation firms will not purchase the company nor its assets. We are agents of the bankruptcy court and, as such, we do not take ownership of the store or assets (inventory, fixtures and equipment). We are simply appointed to assume control of store operations and conduct a going-out-of-business sale. At no time does ownership of Borders’ assets transfer to the liquidators. Borders is being notified of this inaccuracy.”