Thursday, June 04, 2009

Borders seek "funding opportunies"

Following on from the report in The Independent, which I wrote about on May 23rd, Borders UK have confirmed that they have appointed a new financial advisor, Clearwater Corporate Finance, to in their own words, seek out "funding opportunities". They have refused to confirm or deny whether this means that UK operations are once more up for sale.

A spokesperson said: "Following the successful completion of a series of major structural changes in 2008, when Borders UK invested in new IT systems, a new supply chain, disposal of underperforming stores and the launch of a transactional website, we are now well-placed to explore opportunities to take new retail space and develop new trading relationships at a time of significant format change in the products we sell. Consequently, Borders UK has appointed an adviser to seek out funding opportunities. We will be keeping our staff and suppliers fully appraised of this activity."

Comments from the Bookseller website suggest otherwise (i.e. that the staff are and have been the last to be informed regarding anything).

The company has been plagued by rumours for months, following problems with credit insurance and several store closures. Risk Capital Partners bought Borders UK for an initial £10m in September 2007 from its then parent Borders Group. The deal allowed for possible further payments of up to £10m depending on sales performance.

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