Could foundering Borders be transformed into next Apple Store?
One of the two private-equity firms negotiating to buy the bankrupt Borders Group reportedly hopes to save more than half of the remaining stores by taking a page from Steve Jobs’ playbook.
In a profile of rival moguls Jahm Najafi and Alec Gores, The Wall Street Journal contends a plan by the Los Angeles-based Gores Group would save about 250 of the 416 Borders outlets — most of them superstores — by transforming them into “more appealing destinations” similar to the Apple Store chain.
According to the newspaper, the 58-year-old Gores is in talks with more than a dozen companies, including Hewlett-Packard, to showcase their products in the revamped Borders stores. In exchange, Borders would offer discounts to customers downloading books from Hewlett-Packard’s e-readers in the stores. Gores, who would pay somewhere around $250 million for the bookseller’s outlets and other assets, including the website and customer list, would also “emphasize developing a more robust online business for Borders.”
Borders, the second-largest book chain in the United States, is expected to announce a bidder by July 1.