It was formerly confirmed earlier this afternoon, that Borders UK have entered administration. Reports began to circulate early this morning when Reuters reported that they had seen court documentation to support the claim of administration. The story was later retracted amid accusations that the news agency had jumped the gun - what they had in fact seen were documents asking the court for permission to place the company in the hands of administrators, which was not to say that they actually were in administration. Everyone knew however that this was merely a technicality and it was only a matter of time.
It is believed that the delay occurred when BDO informed the Borders UK management late yesterday that they had discovered "a conflict of interest" which prevented them from being declared administrators. MCR have since been appointed, citing the reasons for the company's failure as competition from the Internet, together with cash flow pressure and pressure from suppliers - at least three of whom cut off supply earlier in the week.
It is unclear as to how long the company will remain in administration, but while the process continues, stores are expected to remain open and trading as normal.
This is indeed a sad day for the publishing world, with the loss of some 1100 jobs. Whatever my personal experiences of the company have been (and they have been mixed), I would not wish this on anyone. I have worked through three store closures during the 27 years since I left school, so my thoughts are with them.
It is believed that the delay occurred when BDO informed the Borders UK management late yesterday that they had discovered "a conflict of interest" which prevented them from being declared administrators. MCR have since been appointed, citing the reasons for the company's failure as competition from the Internet, together with cash flow pressure and pressure from suppliers - at least three of whom cut off supply earlier in the week.
It is unclear as to how long the company will remain in administration, but while the process continues, stores are expected to remain open and trading as normal.
This is indeed a sad day for the publishing world, with the loss of some 1100 jobs. Whatever my personal experiences of the company have been (and they have been mixed), I would not wish this on anyone. I have worked through three store closures during the 27 years since I left school, so my thoughts are with them.
No comments:
Post a Comment