Direct Brands LLC, a direct marketer that owns the Book of the Month Club business, has bid $450 million for bankrupt Borders Group Inc. bookseller. If Direct Brands succeeds in its bid, Borders would continue in business as a retailer, however, Direct Brands has not identified which contracts and leases it would assume.
Landlords are also concerned that if Direct Brands’ bid fails, Borders will immediately go into liquidation. A matter of fact, the bankrupt company has already setup a back up group of liquidators who can quickly sell off their company’s assets to satisfy their debts if the sale to Direct Brands collapses. The landlords are not comfortable remaining in the dark on the issues that will directly impact them and have requested that the bankruptcy judge slow down the process and require Borders and Direct Brands to reveal to them how their leases will be handled if the sale is successful.
(source: Bloomberg.com )