Friday, July 17, 2009

Plans for the future of Borders

Following the announcement yesterday of the Borders management buyout, further information has since emerged regarding the new teams immediate plans for the future.

Chief Executive Philip Downer said that among immediate plans was a fresh injection of working capital and further borrowing to extend the company's cash flow. This will help to ensure range, systems and processes are in place in the run up to Christmas. Staff will be reassured to hear that there are no plans for further store closures "in the near future".

Downer has refused to discuss the financial aspects of the takeover, including his own personal stake in the business, but most within the industry are simply relieved that the company has survived. The parent company in the US retains a 17 percent stake in the business, so ties with the US have not been completely severed.

Downer was nevertheless stark about the issues facing the company, admitting that the next few months will be extremely challenging. Downer plans a conference with General Managers, Head Office staff and suppliers within the next few months.

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