Borders seeks buyer for UK and Ireland stores
23 March 2007 09:44
Book shop chain Borders has announced that its US parent company, BGI, has decided to sell off the UK and Ireland arm of the company. Due to increasing competition from supermarkets and online retailers, BGI said that it intends to concentrate on its US business and is in the process of seeking a buyer for the 70 UK and Ireland stores.
George L. Jones, president and CEO of Borders Inc, said: "For us to be successful in reaching the goals we have for the US domestic superstore business, we must significantly reduce investment in the international segment and explore strategic alternatives. These are excellent businesses with dedicated employees and a talented management team. We are grateful for their efforts to help this segment grow."
The announcement is symptomatic of the challenges facing high street book stores with HMV, parent company of Waterstone’s, recently announcing its second profit warning this year. It is understood that management at Borders’ UK division is upbeat about the decision and will be exploring different strategies with for the business with Merrill Lynch.
David Roche, CEO of Borders UK and Ireland, reflected the positive mood, saying: "Borders and Books etc. operate in dynamic markets here in the UK and we are excited about exploring strategic alternatives for the business. We believe firmly that we have both the management and plans in place to continue to grow Borders as a successful player with a unique position in the markets that we operate in." There has been no talk whatsoever of closures, with Borders UK and Ireland being sold on very much as a going concern. Paperchase, the stationery brand also owned by Borders is unaffected by US parent company’s decision.
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