According to reports, Borders has failed to reach an agreement with one of its bidders who had made an offer to keep the company running. The result will be the closure of its remaining 399 stores, including 12 in the Philadelphia region. Borders had filed for bankruptcy protection earlier this year.
The chain's assets will most likely be purchased by Hilco Merchant Resources and Gordon Brothers Retail Partners, who will then liquidate the assets. An objection to the sale, which must be approved by the bankruptcy court, has already been filed by creditors, who say the transaction will leave no one to assume the company's business contracts.
Borders has 10,700 employees, and a phased rollout of closures will run through September.
As for Borders rival Barnes & Noble, the company reported a loss of $59.4 million for its fiscal fourth quarter, as well as a $74 million loss for fiscal 2011. The losses come despite the fact that online sales at BN.com increased 50% for the fiscal year, and overall company sales reached a record $7 billion for the same period. Barnes & Noble received a $1 billion takeover offer in May from Liberty Media Corp., owner of West Chester-based QVC.