Back on August 10th here, I reported "The Bookseller had an article in which the accounting firm Ernst & Young raises "concerns" over whether Borders UK will be able to continue trading."
A little more than a month later, The Bookseller reported here:
Borders UK and Ireland has been sold to . . . Risk Capital Partners for a £10m up front cash payment plus an additional deferred £10m cash consideration. Borders Group will retain an equity interest of around 17% in the business. The transaction includes all 41 Borders superstores in the UK, the Borders superstore in Ireland and all 28 Books Etc stores in the UK.The Times story yesterday indicated that the new owners of Borders UK have been holding talks with the company's competitors who--while interested in buying specific stores in the chain--are not interested in buying the entire chain.
If the company goes into bankruptcy, it is probable the individual stores will be sold off.
The Times' article said the bookchain's challenges include reduced credit insurance (making it difficult to get buy stock on credit), increased competition from supermarkets and from Amazon.com.
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There was an item on the BBC website yesterday about Borders' UK website:
Borders has stopped taking orders for new books on its website while the retailer "is in discussion with potential buyers".
The firm said that existing customer orders are also being delayed but will be fulfilled.
The Borders Entertainment part of the site - which sells DVDs, CDs and electrical items - continues to operate as normal.
Some publishers are also reported to have severed links with the retailer.
When customers try to order a book on the website they receive a message saying: "Sorry, title cannot be purchased."
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