Tuesday, December 22, 2009

From Times Online
December 18, 2009
Borders to close after white knight fails to emerge
Susan Thompson

Administrators of Borders said that a buyer had not been found for the beleaguered book chain and that all 1,100 staff would lose their jobs on Christmas Eve.
The 45 Borders and Books Etc stores will close on December 22, with staff finishing work two days later.
MCR, the administrator, said that it would continue to negotiate with a number of parties about a sale of the group's assets.
MCR has assured staff that they will be paid for the days worked since the group fell into administration.
Nearly 40 head-office staff of Borders have lost their jobs since MCR was appointed last month, although the stores continued to trade.
The business has struggled with severe cashflow pressure this year after sales declines accelerated.
Stock levels were also hit as several of the company’s suppliers stopped or reduced its credit limits, while a number of credit insurers reduced their cover for the company.

The chain opened in the UK in 1997 and was originally owned by the US book giant of the same name.
The UK and Ireland arm was sold to Risk Capital Partners, the buyout group headed by Luke Johnson, the Channel 4 chairman, in 2007.

Management, led by Philip Downer, the chief executive, and Mark Little, the finance director, bought the group back this year with financing from Valco Capital.

No comments: