On June 2, 2011, a bankruptcy judge gave Borders more time to work on organizing its Chapter 11 case. A lawyer for the bookseller said the company hopes to have a plan in place to sell all of the company’s stores by the end of June.
Another lawyer for Borders stated that the company could eventually create a plan to reorganize, but a plan to sell existing stores to a third party is imminent. Borders say they are in talks with “multiple buyers” interested in “most, up to all” of the company’s remaining stores.
Border’s official committee of unsecured creditors argued that Borders is taking too long in its case, and that they want to be kept informed as the bankruptcy progresses.
The book chain filed for Chapter 11 bankruptcy protection in February, citing increased competition for its products and the growing popularity of electronic books. Borders wanted to emerge from bankruptcy by the end of summer 2011, but obligations to book publishers have made the goal unlikely. More than a third of the company’s 642 stores have been closed since the filing, and leases are being reassessed on many of the remaining locations.
Borders has stated that if they reorganize, they anticipate being a much smaller bookseller once they emerge from bankruptcy.
If you are interested in learning more information about filing for personal bankruptcy, contact a Chicago bankruptcy attorney for more information.