Borders and Angus & Robertson’s parent company REDgroup has collapsed. It’s a sad time for book lovers.
Bookstore chains Borders and Angus & Robertson have been placed into voluntary administration by parent company REDgroup Retail, which has collapsed due to a massive downturn in consumer spending, plus competition from cheap online bookselling.
Voluntary administration means that an independent and suitably qualified person has been put in control of the companies’ affairs while the directors look at potential resolutions.
There are over 2500 staff members employed by REDgroup, across 169 Angus & Robertson stores and 26 Borders stores in Australia.
It’s understood that a combination of the high Aussie dollar, cheap online books, high wages and rents, and the retail downturn has led to the decline of the company.
The administrators say that the bookstore chains would continue operating as usual while the financial situation is assessed ahead of the first creditors meeting, to be held next month.
Last year REDgroup had a full-year loss of $43 million.
Whatever happens, the companies that come out of this administration process won’t be the same Borders and Angus & Robertson as they used to be, with definite store closures, and likely cost-cuts and staff-cuts.
Hopefully the company can be restructured, and we can still spend time browsing the shelves of these much-loved bookstores. Fingers crossed.
