July 13 2011
Direct Brands a portfolio company of Najafi Companies announced they are purchasing the Borders Books Group for $215.1 million. The agreement notes that Direct Brands will assume $220 million in debt liabilities that will be turned over to Bankruptcy Court and an eventual auction.
According to their media office, they will also acquire Border store locations not already in the deal and do plan on closing those stores.
“We are pleased to take another important step forward as we position Borders for a vibrant future and sustainable earnings growth. Since the filing, we have made significant progress in reducing our cost structure, refocusing our merchandise offers, and building our eBook business. We look forward to working with a supportive partner as we continue to execute on our turnaround strategy,” stated Mike Edwards, Borders Group President.
Direct Brands also owns Book-of-the-Month Club and Columbia House. Borders rewards programs, and gift cards will be honored during this transition.