Bankruptcy judge approves Borders liquidation

Thursday, July 21, 2011

FILE - In this Feb. 16, 2011 file photo, customers walk into a Borders Books and Music store, in Ann Arbor, Mich. Borders Group filed for bankruptcy Monday, July 18, 2011, after seeking court approval to liquidate its 399 stores when the company failed to receive any bids that would keep the 40-year-old chain in operation. (AP Photo/Carlos Osorio, file)

FILE - In this Feb. 16, 2011 file photo, customers walk into a Borders Books & Music store, in Ann Arbor, Mich. Borders Group filed for bankruptcy Monday, July 18, 2011, after seeking court approval to liquidate its 399 stores when the company failed to receive any bids that would keep the 40-year-old chain in operation. (AP Photo/Carlos Osorio, file)

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bankruptcy, business

NEW YORK -- Borders Group's liquidation plan is set to proceed after receiving approval from a bankruptcy judge.

A judge on Thursday approved the 40-year-old booksellers' plan to appoint liquidators led by Hilco Merchant Resources and Gordon Brothers Group to sell off its assets. Going-out-of-business sales are set to begin at some stores Friday.

About 30 to 35 of the stores could be sold to rival chain Books-a-Million Inc. but the two companies are still in talks.

Books-A-Million, based in Birmingham, Ala., will become the second largest U.S. bookseller after Borders liquidates. It operates more than 200 stores in 23 states and the District of Columbia.

Borders, in Ann Arbor, Mich., filed for bankruptcy protection in February. It said earlier this week it planned to liquidate after a potential private-equity bid fell through.

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bankruptcy, business