PDA

View Full Version : Boarders about to go bust...


Tyburn
11-26-2009, 04:20 PM
Almost Exactly a year after Wollies collapse, the UK based Boarders (which split from the US founders several years ago...looks about set to crumble)

Future of Borders stores in balance
The future of book store chain Borders is hanging in the balance after it emerged the group had applied to appoint administrators.




Book store Borders has lodged a notice of intent to appoint administrators
The future of book store chain Borders is hanging in the balance after it emerged the group had applied to appoint administrators.

Borders, which has around 45 Borders and Books Etc stores across the UK, was revealed to have lodged a notice of intent to appoint administrators on Monday following the reported collapse of takeover negotiations. But it is believed to be scrambling to secure a rescue deal.

The company is not taking orders on its website and has launched "closing down sales" at some stores.

Its call centre is telling customers that Borders is in discussions with "potential buyers" and that the ordering system has been frozen until confirmation of a deal is received.

It is thought that Borders was hoping to sell the bulk of its store portfolio to WH Smith, but its high street rival is understood to have walked away from the deal.

Borders - bought in July under a private-equity backed management buyout - is thought to have suffered in recent years as sales fell because of pressure from supermarkets and the internet.

The firm is reportedly concerned it does not have enough cash to make it through Christmas. It is believed to have struggled because of tough trade credit insurance conditions this year, making it difficult for it to secure stock from suppliers.

According to the Daily Telegraph, HMV-owned Waterstone's is interested in a number of shops, while the Publishers Association is also thought to have established a committee to try and find a way for publishers to continue trading with the firm.

The firm had applied to appoint BDO Stoy Hayward as its administrator. But a spokeswoman for BDO said that the firm had uncovered a "conflict" during its internal checks and is therefore unable to act for the book chain.

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

hughesfan4life
11-26-2009, 04:29 PM
that sucks!.i love borders bookstore.we have a huge one here that has 5 floors and a starbucks in.it's a great place to relax and has an awesome range of books to choose from.i buy lots from them and will be sorry if they close,particularly for the unfortunate people who will loose their jobs.:sad:

rockdawg21
11-26-2009, 04:46 PM
Yeah, I knew that was happening when they closed the Borders store in Laredo, TX. Across Laredo (U.S.) and Nuevo Laredo (Mexico), you have over 500,000 people and they still closed the store.

Not good news for a big company. Maybe they should ask for a bailout like all of the other big failing businesses. I'm sure they would get it as our government seems to be interested in rewarding CEO's who fail.

Tyburn
11-26-2009, 04:48 PM
Yeah, I knew that was happening when they closed the Borders store in Laredo, TX. Across Laredo (U.S.) and Nuevo Laredo (Mexico), you have over 500,000 people and they still closed the store.

Not good news for a big company. Maybe they should ask for a bailout like all of the other big failing businesses. I'm sure they would get it as our government seems to be interested in rewarding CEO's who fail.

I didnt know they were crumbling in America aswell :blink:

Spiritwalker
11-26-2009, 05:03 PM
They are not. They HAVE closed some stores.. but even McDonalds has closed some stores... Closing Stores isn't always a bad thing. Reopening in a different area/market is normally what happens.

Shutting down the whole company as apparently the UK flavor is doing is worse.

Tyburn
11-26-2009, 05:26 PM
They are not. They HAVE closed some stores.. but even McDonalds has closed some stores... Closing Stores isn't always a bad thing. Reopening in a different area/market is normally what happens.

Shutting down the whole company as apparently the UK flavor is doing is worse.

in the UK you dont usually close, unless for serious reasons. This Country has lost a lot of businesses since the wall street wobble. The biggest collapse was Woolworths which crashed LITTERALLY Christmas last year. Was horrible. They basically announced at Advent Sunday that the Company was in trouble...and they were GONE by Epiphany! :blink: