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Job cuts threatened at Borders
BRITISH bookseller Borders UK said today it is seeking a buyer after going into administration, threatening the jobs of its 1150 employees.
The company's 45 stores across Britain have been hit hard by falling book sales as customers increasingly turned to the internet and low-cost supermarket chains for their reading material.
It is unclear what lies in store for the chain's employees, who have been left fearing for their jobs.
Borders has appointed restructuring firm MCR to take control of the business and it is understood that buyers have been lined up for some of the shops.
An MCR spokesman said: "All stores are open. The company is trading through this administration and I can confirm that nobody has been made redundant. It's business as usual at the moment.
"They are trying to find a buyer. There is some interest out there in the market."
The administrators said Borders had been struggling with "severe" cash flow problems and several of the company's suppliers had stopped or reduced its credit limits recently.
In a clear sign that things had taken a turn for the worse, the troubled book chain stopped taking online orders earlier this week.
Today, the borders.co.uk website displayed a notice announcing it has gone into administration.
Borders, originally part of the US group of the same name, opened its first stores in Britain in 1997.
The UK and Ireland arm was then sold on to Risk Capital Partners in 2007.
In July of this year, management, led by chief executive Philip Downer and finance director Mark Little, bought the group back with financing from Valco Capital.
In Australia, Borders is owned by REDgroup Retail, which also owns the Angus and Robertson book retail chain.
http://www.news.com.au/business/story/0,27753,26412186-462,00.html |
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