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Borders UK placed into administration

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by Kay Mitchell

Bookshop chain Borders UK has been placed into administration, according to Reuters.

The move is not unexpected after it was reported earlier this week that the 45-store book retailer does not have sufficient cash to see it through to Christmas as it has suffered amid increased competition from supermarkets and online retailers, such as Amazon.

The company’s website has not been taking orders since the start of the week.

BDO LLP has been appointed as administrator, according to court documents seen by Reuters.

It was reported earlier this week that retailing giant WHSmith had abandoned talks with Borders and since then there have been attempts to find a buyer, but last-ditch attempts have failed.

However, there is speculation that Waterstones owner HMV is interested in a number of shops.

Its administration puts more than 1,000 jobs at risk.

Borders was bought in July from Channel 4 chairman Luke Johnson’s Risk Capital Partners, in a management buyout backed by Valco, the private equity arm of Hilco – the restructuring specialists.

The news comes almost one year after High Street giant Woolworths was put into administration.

The economic downturn has claimed many victims in the retail industry including furniture giant MFI, Zavvi and Tower Records.

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News posted: November 26, 2009

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