6:40pm Thursday 26th November 2009
By Darren Slade
THE future of one of Bournemouth’s biggest shopping names was in doubt tonight after bookshop Borders went into administration.
Around 1,150 jobs nationally are on the line as administrator, ACR, looks for a buyer for the business.
ACR said the company had struggled with “severe” cash flow pressure this year as sales falls accelerated.
Stock levels were also hit as several suppliers stopped or reduced credit limits.
Joint administrator, Phil Duffy, said: “All stores remain open for business while we review the company’s affairs and seek a buyer for all or some of the stores in which there has already been interest.
“All outstanding employee wages have been paid up to date and ongoing wages for retained staff will continue to be paid as an expense of the administration.”
He added that booksellers had been hit in the weakened retail market, with competition on major releases from supermarkets and the internet.
Borders has been a focal point for shopping in Bournemouth since it opened in 2000 as part of a major redevelopment of Bourne Avenue. It was touted as bringing the American-style bookshop experience to the town, with late opening and the chance for customers to browse the books while relaxing in soft chairs.
At its opening, it stocked around 100,000 books, 25,000 CDs and tapes and 5,000 videos and DVDs, as well as a 70-seater cafe.
It later added an in-store branch of the Game video game shop and its original cafe gave way to an in-store branch of Starbucks.
Borders originally belonged to the US chain of the same name, but in 2007 the UK and Ireland arm was sold to Risk Capital Partners.
In July, the business was the subject of a private equity-backed management buyout.
But Borders – which owns both the Borders and Books Etc brands – has struggled with competition from internet retailers.
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