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."