The demise of Borders UK
It looks like the wheels are coming off of Borders UK, and the company could be in bankruptcy by the time you read this. As The Times of London reported in this story yesterday:
STRUGGLING book chain Borders UK is on the verge of collapse this weekend after WHSmith walked away from a rescue deal on Friday.
In an attempt to stave off administration, the high street retailer is holding talks with groups including HMV, which owns rival Waterstone’s and Edinburgh Woollen Mill.
However, it is thought that the companies it has approached are more interested in buying packages of stores.
The lack of appetite for a takeover of the whole company means that Borders could be put into administration this week. It would then attempt to sell stores to interested parties.
Meanwhile, distributors and wholesalers — including giants, such as Gardners — are starting to stop shipments to the company. According to this report from The Bookseller yesterday, “This means trading between Borders UK and at least two of the big four publishers — Hachette UK and Random House — as well as the Faber-led Independent Alliance, is currently on stop.”
On top of that, another Bookseller story says “Borders’ website has stopped taking customer orders, with staff in store told earlier today (23rd November) that they are no longer allowed to place customer orders.”
Finally, a story that went up on the Independent’s website late yesterday says Borders is “thought” to have lined up “an administrator,” meaning it is preparing to declare effective bankruptcy as soon as today.What’s more, reporter James Thompson makes the interesting — and perhaps telling — observation that “the timing of a potential stock liquidation sale would be beneficial in the run up to Christmas.”
And, in a follow-up commentary, it is also Thompson who makes the most poignant observation of them all, in the form of a question: “Is this the final chapter for traditional bookshops?”
From the perspective of a bookseller at Borders I can tell you that the situation is dire indeed. The stock room, which should be overflowing at this time of year, is empty (by which I mean there are literally no books on the shelves). The shopfloor is dead. Worst of all the management aren’t communicating with the staff in any way shape or form. We’ve been waiting all week for something from Philip Downer but he hasn’t the gumption to issue a statement (typical of the man). Even if a buyer can be found some stores stay open (because, let’s face it, some of them will have to go) I imagine that some the staff will have been so damaged and offended by this experience that they’ll be out of the door at the earliest possible opportunity.