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R.I.P. Borders: Book Chain Shuffles Off Into Liquidation

The chain will close 400 stores and lay off 10,700 employees

It's lights out time at nearly 400 Borders stores nationwide.

After failing to generate interest in an auction Monday, the bankrupt book chain announced that it would liquidate. Borders will lay off 10,700 employees as part of the closures.

“Following the best efforts of all parties, we are saddened by this development,” Borders Group President Mike Edwards, said in a statement. “We were all working hard towards a different outcome, but 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.”

A bankruptcy court judge is expected to approve a plan Thursday that would see the company's remaining stores and assets liquidated under the oversight of Hilco Merchant Resources and Gordon Brothers Retail Partners. 

Borders, which was hit hard by consumers' gravitation away from brick and mortar stores and towards online book sellers, filed for bankruptcy last February. It has been trying to interest  a buyer to prop up its remaining stores after closing 228 locations under a Chapter 11 reorganization. 

The liquidation is expected to start for some stores and facilities as soon as Friday, July 22, and will conclude by September, the company said.