Borders UK Placed In Administration
LONDON -(Dow Jones)- Bookselling chain Borders U.K. has been placed in
administration, putting 1,150 jobs at risk, the company's administrators MCR
said Thursday.
MCR said it is working with Borders' management to get the best returns
possible for the company's creditors.
"All stores currently remain open for business as normal whilst the
administrators undertake a review of the company's affairs and seek a purchaser
for all or some of the company's stores in which there has already been
interest," joint administrator Philip Duffy, said, adding that employees' wages
are up-to-date and wages for retained staff will continue to be paid as an
expense of the administration.
Borders U.K., which has 45 stores, has been rumored to be teetering on the
verge of insolvency for days after the company stopped taking online book orders
Monday.
The company has also been affected by the withdrawal of credit insurance,
resulting in some publishers cutting off stock, and stiff competition from
supermarkets and online retailers offering cheaper books.
-By Ainsley Thomson, Dow Jones Newswires; 44 20 7842 9318; ainsley.thomson@
dowjones.com
(END) Dow Jones Newswires
11-26-091225ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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