By MICHAEL J. DE LA MERCED in The New York Times.
A private equity firm, the Gores Group, is in talks to buy at least half of the Borders Group’s remaining stores out of bankruptcy, a person briefed on the matter told DealBook on Wednesday.
A sale could help speed Borders’ exit from Chapter 11 protection. While the company has held talks with other potential suitors, the Gores Group is the current focus of Borders’ plans, this person said.
Talks are ongoing and no deal is imminent, this person cautioned.
Borders filed for bankruptcy earlier this year after a lengthy struggle with declining sales and a big debt burden. It has already agreed to close more than 200 stores as part of its reorganization effort. But it still is under pressure from publishers and other creditors to finalize its restructuring plan.
In the Gores Group, Borders would have a seller used to working with distressed investments. Run by Alec Gores, whose brother Tom also runs a turnaround-focused buyout shop, the investment firm has a portfolio that includes the radio operator Westwood One.
News of the talks was reported earlier by The Wall Street Journal online
Talks are ongoing and no deal is imminent, this person cautioned.
Borders filed for bankruptcy earlier this year after a lengthy struggle with declining sales and a big debt burden. It has already agreed to close more than 200 stores as part of its reorganization effort. But it still is under pressure from publishers and other creditors to finalize its restructuring plan.
In the Gores Group, Borders would have a seller used to working with distressed investments. Run by Alec Gores, whose brother Tom also runs a turnaround-focused buyout shop, the investment firm has a portfolio that includes the radio operator Westwood One.
News of the talks was reported earlier by The Wall Street Journal online
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