This is a headline in the New Zealand Herald this morning. Grant Bradley writing in The Business Herald reports that "the woner of Whitcoulls and Borders is blaming tough times in the book trade for a looming breach of banking covenants.
Australian-based REDgroup Retail says a review of accounts had showed it was likely to breach two out of three of its banking covenants when they are tested on August 28".
Bradley's story goes on to say that the 80 Whitcoulls stores and five Borders outlets in NZ make up about 30% of Group sales, that the company is facing growing competition from Paper Plus which will have 110 stores by Christmas, and that discounting by The Warehouse of top sellers is also hurting, along with online book sales.
If this story interests you, and there is much more than I have quoted, be sure to chcek The Business Herald today. At this stage the story is not online.
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