. . . auditor Ernst & Young drew a series of concerns about Borders UK's long term ability to trade. These included the competitiveness of the high street bookselling trade plus a difficulty in predicting sales performance. A "significant" quarterly rent cost, was also highlighted, that led the majority of the chain's landlords to renegotiate to monthly payments, as well as uncertainty surrounding the continuing support of suppliers and the availability of credit insurance.Last month, the 7/15 edition of Publishers Marketplace reported:
While still denying that Borders UK is even up for sale and insisting that Clearwater Corporate Finance has been hired only to help "seek out funding opportunities," it looks like the ailing chain may have a buyer, or at least a company ready to take it off their hands. The Independent reports that the private equity arm of restructuring company Hilco, Valco Capital Partners, "plans to acquire the entire shareholding of Borders UK and take the company forward."Go here to read The Bookseller article.