Borders Facing Objections On Lease Auction Plan

by San Antonio Attorney

Landlords of Borders Group Inc filed objections for the bookstore sale plan on its leases as part of it is liquidation. According to them, the auction plan does not provide protection to their interests.

There have been at least 20 landlords who filed their objections in the bankruptcy court. Nearly all are demanding for a deadline extension in order to have enough time to assess the winning bidders.

Border has made a proposal a week ago to group the leases into two and hold separate auctions for each group. The first auction will be on August 31 and the second will be on September 13.  The deadlines for filing objections for each of the winning bidders would be two days after the date of the auction.

The landlords are saying that they are not given the time they need to assess the ability of a potential lease buyer to carry out the lease being acquired.

A few of the landlords that filed for objections are the Related Urban Management, RREEF Management Co, and Macerich Co.

Landlords had previously opposed to the tight deadline of objections for the Borders’ sale plan to Najafi Cos. The proposed sale plan collapsed due to the creditors’ strong opposition. It forced Borders to go forward with liquidation of its 399 remaining stores.

Borders is likewise going forward with other areas of its closing, particularly its lease auction proposal and a plan for intellectual property auction. The selling of its intellectual property is going to include list of its customers, the bookstore’s brand name, and trademarks.

A hearing to establish procedures for the bidding of lease and intellectual property is set for Wednesday.

Borders is going out of business after it failed to sell itself in order to get out of bankruptcy. The second-largest bookstore chain in the U.S. filed for bankruptcy saying that it is unable to withstand the growing competition with other booksellers.

Leave a Comment

Previous post:

Next post: