We mean business
Comprehensive legal services for businesses
in New Jersey and New York

COVID-19 Notice: In order to best serve you, while being mindful of your health and safety, we are available for consultations and conferences via telephone and video. We can arrange for documents to be prepared, reviewed, signed and exchanged electronically. We are ready to assist you with all of your legal needs.

We are open and ready to assist you. Go to our COVID-19 Updates page to see our latest statement on the crisis and a list of recent news and developments during this challenging time.
comprehensive legal services for businesses

Borders gets bankruptcy extension to reorganize business

The bookstore chain giant, Borders Group Inc, is currently working on reorganizing the company while protected by Chapter 11 bankruptcy status. On Thursday, the company appealed to a bankruptcy judge to be given more time to put together a plan for exiting bankruptcy. Borders’ attorneys said that the company was suddenly getting multiple offers to buy some or all of its stores still in operation and wanted more time to negotiate a sale.

Borders had until June 16 to come up with a plan or other groups would be given the opportunity to come up with a reorganization plan for Borders or plan to buy the company. The judge sided with Borders over the company’s creditors and granted a 120-day extension.

According to Reuters, one of Borders’ plans for reorganization is to provide more services in-house. For example, Borders wants to end its contract with Seattle’s Best Coffee, the company that runs its coffee shops, and run the coffee shops on its own. According to Reuters, Seattle’s Best had coffee shops in 400 Borders stores before the bankruptcy filing. Now Borders only has 175 stores still in operation.

The two companies are going to court over the broken contract. Seattle’s Best says that it understands that Borders can legally break the contract while in bankruptcy, but it doesn’t want to continue in the stores now with its products and trademarks, while Borders is planning a replacement.

Like other “brick-and-mortar” stores, Borders has struggled to compete with competitors who sell goods mostly online. Blockbuster filed for Chapter 11 bankruptcy protection last year after struggling to compete with Netflix.


Borders lawyer says multiple parties eyeing stores (Reuters)

Office Location

Dunn Lambert, LLC
East 80 Route 4 Suite 170
Paramus, NJ 07652

Paramus Law Office Map

Dunn Lambert, LLC
1745 Broadway, 17th Floor
New York, NY 10019
New York Law Office Map

Phone: 201-957-0874
Fax: 201-291-0140

Phone: 201-291-0700
Fax: 212-519-9804
Best Lawyers | Best Law Firms | U.S.News & world report | 2017

GET ANSWERS from a firm
with a sense of business.


Review US
FindLaw Network