Borders Can Liquidate Without Higher Bid, Judge Says

Borders Group Inc., the bankrupt bookstore chain, will start its asset auction with an offer from liquidators after failing to persuade a private-equity firm to keep the company running.

U.S. Bankruptcy Judge Martin Glenn in Manhattan today approved a procedure to auction Borders’ assets that makes a group of liquidators, rather than Najafi Cos.’ BB Brands, the so-called stalking-horse bidder. Such bids, which provide protections for interested parties who do work valuing assets, become default purchase agreements if no other bids are made.