Retail Week - June 26, 2009
Sources said the memorandum has been sent to “selected private equity houses and trade buyers”.
One interested party said it was “all about to kick off” as potential investors examine the business and mull over the possibility of buying the bookseller.
Planet Retail analyst Paola Montealegre said: “The company has shown its commitment to overcome the difficult market. However, its plan to revitalise the business may not be enough to compete with new channels such as supermarkets and internet retailers.”
She added that another private equity firm could see a “possibility to transform its specialist focus into a wider-entertainment store” but that it would have to be “willing in this climate to increase its capacity in bricks and mortar and take on a proportion of possible debt”.
Borders, owned by Luke Johnson’s Risk Capital Partners, declined to comment.