Nov 26 2009
Philip Duffy, Geoff Bouchier and David Whitehouse of MCR have been appointed Joint Administrators of book-store chain Borders (UK) Ltd.

Borders (UK) Ltd, which has 45 branded Borders and Books Etc stores across the UK.

The Administrators are currently working with the management of Borders (UK) Ltd in order to maximise the realisation for the Company's creditors. Some 1,150 employees are affected.

The administration follows the continuing pressure on the retailer from increased Internet competition, which has accelerated over the last year with sales levels falling further behind prior year levels. As a result the company has suffered from severe cash flow pressure and several of the Companys suppliers have placed the business on stop or reduced credit limits. A number of credit insurers have also reduced cover to the Company.

Borders opened in Britain for the first time in 1997. Brothers Tom and Louis Borders established its American parent in 1971. It was spun off from Borders Group in 2007.

Phil Duffy commented: "All stores currently remain open for business as normal whilst the Administrators undertake a review of the Companys affairs and seek a purchaser for all or some of the Companys stores in which there has already been interest.

All outstanding employee wages have been paid up to date and ongoing wages for retained staff will continue to be paid as an expense of the Administration."

The appointment of MCR as Administrators to the business is indicative of the weakening position of book retailers in the current market with competition on bestsellers from supermarkets and the growing strength of the digital and on-line markets in this sector, he continued.

About MCR

MCR was formed in April 2001 to offer turnaround, restructuring and insolvency services of outstanding quality to banks, lenders, business owners and individuals in the mid-market sector. It aims to provide the most practicable ways to resolve issues affecting business performance.

The firm has 12 partners who practice an ethos of high-level involvement to ensure that each assignment capitalises upon the expertise and knowledge of the whole team.

MCR regularly handles significant projects across a range of sectors and has been involved in a number of high profile cases. MCR is increasingly being asked to restructure businesses and find turnaround solutions to help companies avoid formal insolvency. Sectors include retail, financial services, property, manufacturing, printing, recruitment, hotels, leisure, e-commerce, automotive, telecommunications, music, entertainment and construction.

For more information, www.mcr.uk.com