Aug. 25 (Bloomberg) -- The leases of 14 Borders Group Inc. superstores and specialty stores will be acquired by Books-A-Million Inc. for $934,209, according to court documents.
Borders and Books-A-Million reached agreement for the lease sale, which includes a payment of $750,000 plus $184,209 in “cure” costs for landlords, according to the filing yesterday in U.S. Bankruptcy Court in Manhattan. The agreement has a condition that it must be approved by the bankruptcy court by Aug. 29, according to the filing. A deal for Books-A-Million to buy 30 Borders locations fell through last month.
The store locations in the lease agreement include Portland, Maine; Canton, Ohio; Concord, New Hampshire; and Mays Landing, New Jersey.
“Debtors, after consulting with their professional advisers, believe that the consideration offered as part of the BAM transaction for the BAM leases is greater than the debtors would receive if they sold each individual lease pursuant to the auction process approved by the bankruptcy court,” Borders lawyers said in the filing.
Books-A-Million said on July 26 that it ended a bid to buy 30 locations after the companies failed to agree on terms and going-out-of-business sales at the locations.
Borders on July 21 won bankruptcy court approval to liquidate its remaining 399 stores.
Books-A-Million, which also runs stores under the names Books & Co., Bookland and Joe Muggs Newsstands, is based in Birmingham, Alabama, and operates 230 stores.
The case is In re Borders Group Inc., 11-10614, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
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