Another private equity firm emerges as possible acquirer of Borders

Posted on Tue, Jun 7, 2011 : 9:42 p.m.

Another private equity firm emerges as possible acquirer of Borders

By Nathan Bomey

Another possible suitor for Borders Group Inc. has emerged: Phoenix-based private equity firm Najafi Companies, according to a Wall Street Journal report published tonight.

At least two private equity firms are considering a bid for Borders, which employs close to 400 workers at its Ann Arbor headquarters.

Melanie Maxwell | AnnArbor.com

Najafi, which previously acquired the direct-marketing firm that operates brands such as the Book of the Month Club, joins Los Angeles-based private equity firm Gores Group on the list of companies that are publicly known to be considering an acquisition bid for Borders.

Borders is seeking bids for the company while also getting ready to deliver a reorganization plan that would have to be approved by a New York judge overseeing the firm's Chapter 11 bankruptcy case.

Najafi and Gores Group would each reportedly acquire more than 200 Borders stores in addition to the company's online sales business.

It's unclear how a sale would affect Borders headquarters, where close to 400 workers remain.

Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.