It is distinctly likely that the coming days will see Borders UK officially enter administration despite interest from both HMV and WH Smith to purchase part or all of the retail chain of 45 stores. However, it is understood both have now withdrawn their interest. Even a late bid in the last few days by the UK Publishers Association to form a committee headed by Hachette UK Deputy CEO Peter Roche to try and produce a trading formula to ease the pressure on the retailer looks to be a forlorn hope. Borders UK are on account hold with most major publishers.
It is understood BDO Stoy Hayward are already effectively in place to carry out administration duties and this could come as early as tomorrow morning. In an internal email to company staff today, seen by thebookseller, company chief, Philip Downer’s words seem ominous.
“My apologies for the lack of communication over the past couple of days. At this time I cannot add to my previous statements. I do appreciate how unsettling this is for everybody, and I do understand how challenging that makes relationships with our customers, and with other stakeholders. Once again, my thanks to everybody for all of your efforts.”
As of Thursday morning, BDO have withdrawn from their potential role as administrators due to what they describe as an ‘uncovered conflict of interest’. Reuters UK office earlier claimed they had seen court documentation suggesting the retailer had already gone into administration, but later pulled the news report.
