Borders UK On the Brink of Collapse

According to reports in this weekend’s business section of the Times UK, Borders UK retail chain is on the brink of collapse following WH Smith withdrawing from rescue discussions with the book retailer. It is expected talks will continue this week with other perspective groups, but one of the main points of contention is that Borders is no longer seen as a viable package as a whole. Interest remains only in the purchase of specific parts of the Borders retail business.
The current crisis follows a buyout in July by a management led investment group headed by current Border’s Chief Executive, Philip Downer and Financial Director, Mark Little. The management group is funded by Valco Capital Partners and it was hoped that it would ensure the future of Borders UK as a book retailer.
It may prove to a tumultuous week for Borders with the looming threat of financial administration.

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