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article imageUK's Borders goes into administration

By Maciej Lewandowski     Nov 27, 2009 in Business
UK bookshop chain Borders moved into administration on Nov. 27. While all the stores remind open, the administrator is trying to sell the whole company.
Border's future was uncertain for several days. The big trouble started last week, after WH Smith withdrew from the negotiations on the purchase of the chain. Then the big British publishers stopped trading with the company and Borders stopped taking orders on its website.
As it turns out, the company was in serious trouble a few years.
As the Guardian reports, the company made a loss of £10.3 million in 2007 and £13.6 million in 2008, mostly because of strong competition from the supermarkets and the Internet booksellers. This led to a lack of financial capacity.
As an administrator to the company have been appointed Philip Duffy, Geoff Bouchier and David Whitehouse of MCR.
The Borders website displays only an announcement of the appointment of the administrator, but all the stores remain open to business, as the administrator's statement claims.
The  2 for £10  deal in Dundee Borders store.
The '2 for £10' deal in Dundee Borders store.
As I learned on Nov. 27 in local Borders store in Dundee, there are visible signs of an unusual situation of the company: massive 20% discount on almost all items through the entire store and the members of staff busy putting the discounts notices on the shelves.
Some of the goods are reduced up to 50 percent and a small part of the shop offers '2 items for £10' deal.
The shop also stopped selling the gift tokens, popular Christmas presents, but – according to the notices at the counters – it could still accept them for payment, although a gift token may be used only as a payment for half of the transaction. It means that anybody who wants to redeem £10 token, has to make a purchase for £20 and pay £10 in cash.
According to the latest news by the Bookseller.com, closing down sales will began on Nov. 28.
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