Borders filed a motion Friday taking six of the 51 stores off the list of outlets that may be closed because of the lack of agreements with landlords to extend the time for negotiating new leases. In a related development Judge Glenn approved the request by Borders to move up the hearing date to hear a motion to give Borders approval to conduct store closing sales at stores where extensions have not been reached. Glenn set the hearing for June 20.
Stores where extensions have been reached include four airport locations---two in the Detroit Airport, one in Boston’s Logan Airport and a fourth at the Raleigh Durham Airport. Stores in Westland, Mich. and Williamantic, Conn. have also been moved off the list.
The request to move up the hearing date was made to ensure the Borders stays within the requirements of its DIP financing that requires that it hold a hearing no later than June 22 for Borders to receive approval to conduct store closing sales. In its motion, Borders noted that it has requested a waiver to liquidate stores with which it does not have an extension agreement “pending the proposed scheduling of a hearing to consider the sale of the entire business on or about July 21.”
At the June 20 hearing, Borders will be looking for permission to conduct closing store sales and to approve procedures to select a liquidator. Objections to the motion must be filed by June 16.
