After recent failed attempts to sell its stores, Borders (UK) Limited has gone into
administration. Philip Duffy, Geoff Bouchier and David Whitehouse of insolvency and restructuring firm MCR were appointed after its advisors BDO Stoy Hayward pulled out due to a conflict of interest.
About 1,100 jobs have been put at risk at the 45-store bookseller, nine of which trade as Books Etc.
The administrators are working with Borders' management to sell all or part of the company as a going concern. The finances are also to be assessed.
Orders are not being taken on the website and closing down sales have been launched at some of the stores. Several publishers are believed to have ceased supplying books to the bookseller for some time.
Mr Duffy of MCR blamed "competition on bestsellers from supermarkets and the growing strength of the digital and online markets in this sector."
Sam Hussain of book chain Foyles would be interested in purchasing some of the stores but not the entire company.
It has been reported that a stock liquidation could take place before Christmas as part of the administration process, a move that would hit rival booksellers including Waterstones.
Borders US sold its UK operations to Luke Johnson's Risk Capital Partners in 2007 for £20m, having already been established in the UK for ten years. Borders UK was sold in July this year in a management buy-out to the investment unit of Hilco, and backed by Valco Capital Partners.
