Distressed bookseller REDgroup Retail urgently seeks buyer
Pacific Equity Partners’ REDgroup Retail, the owner bookstore chains Borders and Angus & Robertson now under administration, is “urgently” looking for a buyer in order to continue operations.
Ferrier Hodgson administrator John Melluish announced that he is "urgently seeking offers from potential buyers of all or part of the Angus & Robertson or Borders networks" and offers for individual stores would be considered. "If we are unable to find a suitable buyer, the Angus & Robertson and Borders stores will be closed," he said in a statement.
REDgroup, which just two years ago had ambitions to launch on Australia's bourse, collapsed and was handed over to Ferrier Hodgson in February of this year. That news came months after REDgroup was reportedly set to breach two of its three banking covenants due to its inability to repay debts of A$175 million ($158 million).
REDgroup's down spiral has been attributed to the post-global financial crisis retail conditions across Australia and New Zealand, as well as competition from online sources such as Amazon.com. Up until recently the Melbourne-based company was touted as a leading book, stationary and entertainment retailer in Australia, New Zealand and Singapore, operating 169 of Angus & Robertson's stores and 26 Borders stores as of this year. Since that time, 55 Angus & Robertson and Borders stores have closed.
Ferrier Hodgson has also announced that 34 employees at REDgroup's head office will be made redundant.
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