Borders Group Inc. (fka BGPIQ)

[Seminole Red]

Borders to Shut Down .

Borders, which employs about 10,700 people, scrapped a bankruptcy-court auction scheduled for Tuesday amid the dearth of bids.

The chain said it will ask a judge Thursday to approve a sale to liquidators led by Hilco Merchant Resources and Gordon Brothers Group.

.The liquidation of the company's remaining 399 stores could start as soon as Friday, and the chain is expected to go out of business for good by the end of September, the company said.

"Following the best efforts of all parties, we are saddened by this development," said Borders Group President Mike Edwards. "We were all working hard toward a different outcome, but the head winds we have been facing for quite some time, including the rapidly changing book industry, [electronic reader] revolution, and turbulent economy, have brought us to where we are now."

Borders's best chance for survival fell apart last week when talks with private-equity investor Jahm Najafi to buy the company collapsed. Borders's scrambled to find other buyers over the weekend, but no bids emerged that would save the chain.