Borders Group Inc. started close-out sales this morning at all 399 stores nationwide, including six in Hawaii, after a New York bankruptcy judge approved the company’s request to liquidate assets following its failure to attract a suitable buyer.

More than $700 million of inventory, including books, puzzles/games, activity sets, stationery, magazines, and music and movies, as well as store fixtures, furnishings and equipment, will be discounted up to 40 percent at all locations.

"All stores will wind down by the end of September," though no specific closing dates have been set for the Hawaii stores, according to spokeswoman Mary Davis.

When Borders closes its six remaining bookstores in Hawaii over the next two months, 163 employees will be left without jobs, and thousands of square feet of retail space will go dark. The Ann Arbor, Mich.-based pioneer of the big-box bookseller concept plans to lay off 10,700 employees nationwide. 

It is possible that some locations could be revived by a rival bookseller.

Borders competitor Books-A-Million Inc. on Thursday announced it had put in a bid to buy the leasehold interests in 30 Borders locations, as well as inventory, fixtures and equipment. The list of stores it is seeking to purchase hasn’t been made public. If approved by the bankruptcy court, Books-A-Million would continue to operate the stores.

The Birmingham, Ala.-based company operates 231 stores in 23 states and the District of Columbia under the names Books-A-Million, Books & Co. and Bookland. It also sells on the Internet at www.booksamillion.com.

The liquidation sales that began Friday include 259 Borders superstores as well as 114 Borders Express and Waldenbooks and 26 Borders Airport stores. 

Borders gift cards will be honored throughout the sale. Borders Rewards Plus members will initially continue to receive additional discounts on qualifying purchases. Borders Bucks can be redeemed until they expire on July 31. Sales made on or after July 22 are final. Returns made on any merchandise purchased before that will be subject to Borders existing return policy.

"This marks the end of an era and we thank our customers for their patronage over our 40-year history," said Mike Edwards, company president, in a prepared statement. "The commitment to our customers will remain a top priority throughout the going-out-of-business sale.