Reportedly, Direct Brands will purchase the dying book vendor's assets and assume some of its debt, if the bankruptcy court approves the deal.
How will Najafi Companies, the parent of Direct Brands, manage brick and mortar stores when they're accustomed to mail order sales?
You might be thinking that the investment firm is keen on Borders' online capability, or its Kobo reader and the downloadable book. Najafi Companies owns the likes of The Book Of The Month Club and Columbia House, neither of which ever involved stocking shelves or setting up display tables.
Yes, well. Columbia. Does anyone buy CDs anymore? And is there much movement in DVDs these days when Netflix can send what you want direct to your computer or video game console?
And would you expect much from a firm that has invested in the Phoenix Suns? Not linked to books in any way, but then again, neither are their restaurant interests. Borders is just another investment opportunity for them, and one they expect to return that investment.
Amazon is so far ahead of Borders in the online sales race that it's hard to imagine how Najafi Companies could make headway. Indeed, their book business model seems like the 1950's, not the instant gratification, download now, modern times.
Keep in mind that Najafi began as a real estate investment group. Borders' stores represent real estate....that can be sold or rented to other than a Borders book store. There may be value in the assets, and Najafi may plan to harvest those assets and make the Borders chain an empty shell, a memory.
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