Borders UK Formally Enters Financial Administration

Borders UK formally entered financial administration this afternoon with the appointment of MCR who will carry out a period of assessment before reporting to creditors. However, the 45 Border stores in the UK will continue to trade and its 1150 staff will be paid their wages.
Some news networks jumped the gun a little early this morning when Reuters reported that they had seen court documentation to support the claim of administration. It is believed the delay on formal administration being declared occurred when  BDO informed Borders UK management late yesterday that they had discovered ‘a conflict of interest’ which prevented them from being declared administrators.
It is not known how long Borders UK will be in administration, but the likelihood is that the business will be sold off in several parts rather than as a single going concern.

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