Last chapter for book chain Borders

Dec 22 2009 By nebusiness

BOOK chain Borders saw its last day of trading today as the business prepares to shut down after 12 years with the loss of 1,100 jobs.

The group’s 45 Borders and Books Etc stores are due to close at the end of the day, with staff set to leave on Christmas Eve.

Customers have been picking over cut-price titles on offer at the store since administrators MCR launched a closing-down sale - with even boxes of stationery from the store room up for grabs.

Borders went into administration at the end of last month after internet competition put the business under heavy pressure.

MCR had been in talks with would-be buyers for some stores but warned last Friday that it had not been able to sell any part of the business as a going concern.

Nearly 40 head office staff at Borders have already lost their jobs since MCR was appointed.

Alongside heavy competition, stock levels were also hit as several suppliers stopped or reduced credit limits and a number of credit insurers reduced their cover for the firm.

The chain opened in the UK in 1997 and was originally owned by the US book giant of the same name.

But the UK and Ireland arm was sold to buyout group Risk Capital Partners - headed by Channel 4 chairman Luke Johnson - in 2007.

Management, led by chief executive Philip Downer and finance director Mark Little, then bought the group back with financing from Valco Capital earlier this year.