Borders Group liquidating, 4 Iowa stores will be closing

After failing to attract a buyer, Borders Group Inc. on Monday said it will close all 399 of its retail stores, including locations in Ames, Davenport, Dubuque and West Des Moines.

Borders said it will sell the assets of retail bookstores to liquidation firms Hilco and Gordon Brothers and submit a liquidation plan for

bankruptcy-court approval. The second-largest bookstore operator after Barnes & Noble Inc., employs about 10,700.

Liquidation is expected to begin for some stores and facilities as soon as Friday, with a phased rollout of the program to be completed by the end of  September, the company said Monday in a statement.

"Following the best efforts of all parties, we are saddened by this development," said Borders Group President Mike Edwards. "The headwinds we have been facing for quite some time, including the rapidly changing book industry,  eReader revolution, and turbulent economy, have brought us to where we are now."

Borders Group's final chance to avoid liquidation evaporated last week when negotiations with private-equity investor Jahm Najafi, whose Direct

Brands unit owns Book of the Month Club, failed to produce an agreement.

Borders Group filed for  Chapter 11 bankruptcy reorganization and protection in mid-February, becoming the ninth-largest retail  bankruptcy since 2000. Kmart's $14.6 billion 2002 bankruptcy remains by far the largest since 2000.

Hurt by heavy competition from Wal-Mart and online retailers like Amazon.com, Borders sales have tumbled in recent years.