Buyer approved for Maine Mall Borders

SOUTH PORTLAND — It appears books will remain on the shelves at the South Portland Borders location. They'll just be sold by a different company.

In an Aug. 24 filing with the U.S. Bankruptcy Court in New York, Borders' attorneys presented a Letter Agreement to sell unexpired leases at 14 "superstore" locations, including South Portland and Bangor, to Birmingham-based Books-A-Million Inc., for $934,209 - including $184,209 in so-called "cure" costs for landlords.

The Wall Street Journal reported Tuesday that U.S. Bankruptcy Court Judge Martin Glenn approved the deal Aug. 29, adding that Books-A-Million expects to take over the lease by Sept. 20.

In an interview shortly after Borders called it quits July 21, Bull Moose Music owner Brett Wickard expressed interest in acquiring the local South Portland store as a complement to his Scarborough location.

However, on Thursday he was unwilling to say which, if any, Borders stores he might bid on. Prior to the Books-A-Million deal, interested parties were to have places bids in two rounds - by Friday for the Auburn Waldenbooks (previously owned and operated by Borders), and by Sept. 7 for Borders stores in Bangor, Brunswick and South Portland.

The bankruptcy court does have the right to deviate from that plan if it feels a deal is in hand that will benefit Borders creditors, as the company works to liquidate its assets.

In the filing, company attorneys for Borders take this tact, saying, "the consideration offered as part of the BAM [Books-A-Million] transaction … is greater than the debtors would receive if they sold each individual lease pursuant to the auction process approved by the bankruptcy court."

The other Borders locations included in the lease purchase agreement are located in 12 states, including New Hampshire.

Borders, a Michigan-base corporation, filed for Chapter 11 bankruptcy protection in February. Immediately after the July announcement that had failed to find a buyer and would close up shop at all 399 locations, word emerged of a 30-store deal with Books-A-Million. That deal reportedly fell through when the parties failed to come to terms.

Books-A-Million, often referred to as the nation's third-largest bookstore chain, has 232 stores in 23 states and the District of Columbia. It jumped to No. 2 on the list, behind Barnes & Noble, following the Borders collapse.

No one from Books-A-Million returned a request for comment on this story.