Borders US agrees sale to Najafi

Borders US agrees sale to Najafi

Borders in the US has agreed to sell to private investment firm Najafi for $215m (£135m), it has been announced today.

The Borders Group bookselling chain is now seeking bankruptcy court approval for the agreement, which if passed, will also see Najafi take on $220m of the company's debt.

Hilco and Gordon Brothers will acquire the stores not included in a sale to Najafi.

The bookseller filed for bankruptcy in February and had set itself a deadline of today (1st July) to sell itself at a court-approved auction with a guaranteed buyer, known as a stalking horse. The bid will open an auction for the company and its assets, so a higher offer is possible.

Najafi's Direct Brand unit, which is acquiring the bookseller, already owns the Book-of-the-Month Club, Doubleday Book Clubs and Columbia House. The Phoenix-based private equity firm also bought Bertelsmann AG's North American Direct Group division in 2008.

Bloomberg reports that Borders Group president Mike Edwards said in a statement: "We are pleased to take another important step forward as we position Borders for a vibrant future and sustainable earnings growth."

The official completion of the sale is expected by 29th July.