INTERACTION

Borders UK have financial problems. They've announced the closure of five stores, including Oxford Street which for Interzone's bookshop distributor was 13% of Borders magazine turnover. The leaseholds are being sold to a major fashion retailer.

Borders UK has not paid our distributor in a while and they have now requested payment within seven days and threatened legal action if this is not forthcoming. Supplies haven't been suspended at this stage, although obviously there'll be extra returns from the five stores as they close down.

Recently Black Static also began to supply some Borders UK stores, via a different distributor.

The five stores already sold are Blanchardstown (Dublin), Llantrisant, London Colney, Oxford Street, and Swindon. According to Borders, "The staff of these stores will now be entering a consultation process. Over the next few weeks, the five stores will move into close-down sale and physical strip-out."

Ouch...

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http://www.aliettedebodard.com

Wasn't there talk of a management buyout for those five shops, or did that fall through?

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http://jimsteel.wordpress.com/

Llantrisant is my closest and has only been there for a few years...

Press Release dated 16th July, received by Interzone's bookshop distributor 21st July, posted here eventually by me...

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Borders (UK) Limited, the leading UK book retailer, has today confirmed the completion of the sale of its UK business to a management buyout team led by Philip Downer, Chief Executive and Finance Director, Mark Little.

Since 2007, Borders has traded effectively with the support of Risk Capital Partners, following the sale of the business by Borders Group, Inc. More recently, RCP and the existing management team have been seeking a new investor to take the business forward.

The buyout, funded by Valco Capital Partners ("VCP"), follows the sale of five of the Company’s store leases to New Look. Other companies supported by VCP include Denby Pottery, the 200-year-old manufacturer of premium tableware, and Clipper Marine, a fast-growing leisure boat company.

Luke Johnson of Risk Capital said: “I am very pleased that the management of Borders are taking the business forward with a new backer, and I hope they achieve lasting success.”

Phili p Downer, Chief Executive, said: “We are delighted that we have been able to secure the future for Borders in what are exceptional times for UK retailing and the global economy. The Borders management team looks forward to continuing to develop our innovative approach to bookselling, driving sustained growth and success in the future, and strengthening our unique position in the UK book market.

The latest from Interzone's bookshop distributor:

"As you may know we have been having trouble getting Borders UK to pay us on time.

Last week we delayed going to court when at the last minute Borders said they would pay us within two days. When they did pay us it was not in full and so far they have only paid two thirds of what we were demanding. We expect to get the last third of the overdue amount this week. During this hiatus we had their account on stop for 2 days and some magazines despatch into Borders branches was delayed.

We hope that supplies will not be suspended again but if Borders payments continue to be erratic we may have to suspend them again.

We will do our best to keep you all up-to-date with the Borders situation if there are further events to report."

It's hard for everyone, so am only posting this fyi. Still, worth remembering that magazines are at the very end of the queue as always, they're not getting paid either and yet are still printing and delivering copies.

Borders Oxford Street will be dearly missed! When I lived close to London, I always used to go, and was located very close to my bus stop. Opening times were great, too!

But what's going on with Interzone is lamentable and I hope they will pay for the magazines delivered!

Borders UK is on the verge of collapse. Up for sale, no longer taking customer orders, major distributor not supplying stock due to unpaid bills...

Interzone and Black Static are still going into Borders via Central Books and Native Publisher Services, but we haven't been paid a single penny in several months. We might have to start passing the hat around.

So how bad is it, for tta?

WH Smiths had expressed an interest in buying the British stores but it now looks like they've changed their minds. HMV (who aggressively targeted nearby Borders shops through their selective Waterstone's discounts) might be interested in a few shops in choice locations, but it's starting to look like Borders might not make it into 2010.

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http://jimsteel.wordpress.com/

Borders UK has entered administration.

Thats a shame I remeber doggin school when I was fifteen sittin on one of the comfy seats readin Joe Haldemans Forever War.

Hope this isn't too dire news for tta

I jumped the gun a bit. As far as I know they asked BDO to administer, but apparently BDO turned them down due to a conflict of interests. But presumably it's just a matter of time?

Yup. They've just gone

http://news.bbc.co.uk/1/hi/business/8380268.stm