Najafi Cos., another investment firm that specializes in distressed companies, has joined the bidding for Borders, which was already in talks with Gores Group (see “Bottom Feeder Bidding for Borders”), according to the Wall Street Journal. No potential pricing was revealed, but the remaining stores, Web store, and customer lists would all be part of a Najafi purchase. 

 

Najafi’s best turnaround was Network Solutions, purchased in 2003 for $20 million in cash and $80 million in debt, which was sold for $800 million five years later.  

 

Gores Group would use the stores to build the Web business, according to the report. 

 

Borders is attempting to find a stalking horse bidder whose bid could be used as a floor above which any other bidders in a bankruptcy auction would have to bid.