Borders Group Liquidation: Book Chain Wants to Auction Web Site, Customer Data

The demise of Borders through bankruptcy liquidation currently in process was in part attributable to the fact that the company was a decade late in launching its own online bookstore. But better late than never, as borders.com, not launched as an online bookstore until last year, is now one of the chain's most valuable assets.

Borders says the company has received "multiple inquiries" about a possibly sale of Borders' IP assets, including domain, an online bookstore and millions of Borders Rewards customers. The company's brand name and Web presence is still retained in its liquidation process, and they assets are expected to be sold.

Borders brand name, Web presence and rewards data "should garner significant interest from potential bidders," the company says.

Borders is asking the U.S. Bankruptcy Court for permission to sell "membership lists, customer information, including contact information and email addresses and other purchasing history and related information" in accordance with privacy policy.

Borders asked the bankruptcy court to approve bidding procedures for selling those assets. The company suggested in its proposal that procedures for handling such a sale would be approved by the court at a hearing on Aug. 10, with an auction for the assets to be held Sept. 14.

Borders is in the process of closing all of its 399 stores through liquidation. The company, America's second-largest bookstore, filed for bankruptcy protection in February. Borders began liquidation last Friday. The company's brand name and online assets, including membership information, was not a part of that liquidation process.

Among the bidders that could be interested in the property include Amazon.com, Barnes & Noble and Books-A-Million. Amazon is the world's largest online bookseller, and the company once managed Borders' online bookstore, until the company broke off that relationship to launch its own online bookshop.