Borders has found a bidder, Direct Brands, who would acquire its assets for $215 million and assume the booksellers $220 million debt, reports Mediabistro's Galley Cat and the AFP. The brick-and-mortar company filed for bankruptcy in February and has seemingly struggled to create a viable business plan (a rumored Barnes & Noble merger was floated late last year) as consumers look online for books. The Associated Press reports:

The agreement is tentative and is what is known as a "stalking horse" bid for a company under bankruptcy protection. The bid will open an auction for the company and its assets, so a higher offer is possible. A bankruptcy court hearing on the deal is set for 21 July. Borders, the second largest US traditional book store chain, filed a separate motion to liquidate in case the court does not approve an auction.

The plan is still subject for approval by the bankruptcy court, but Galley Cat adds: "The deal is expected to go through by late July."

Want to add to this story? Let us know in comments or send an email to the author at ehayden at nationaljournal dot com. You can share ideas for stories on the Open Wire.
Erik Hayden