ANN ARBOR (WWJ) – The Wall Street Journal is reporting that an Arizona private equity firm is among those in discussions to buy bankrupt Ann Arbor-based bookseller Borders Group.
According to the Journal, Najafi Cos. is competing with Los Angeles-based Gores Group, owned by Alec Gores, brother of new Detroit Pistons owner Tom Gores.
Najafi usually makes investments of $1 billion or less. Both Najafi and Gores Group specialize in buying at-risk companies and turning them around.
Borders entered Chapter 11 bankruptcy protection in February and closed many of its stores around the country. Both Najafi and Gores are focusing on Borders’ remaining 265 “superstores.”
Borders has about 19,000 employees. The company’s original June 16 deadline to file a reorganization plan has been extended 120 days by a federal bankruptcy judge.
(Copyright 2011, WWJ Newsradio 950. All Rights Reserved. The Wall Street Journal And The Associated Press Contributed To This Story.)