The Bookseller.com

2nd December 2008

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BA hits out at Bertram decision

06.09.07 Graeme Neill

The Booksellers Association has hit out at the Competition Commission's decision to green light the acquisition of Bertrams by Woolworths. Woolies will now press on with a merger of THE with Bertrams, with the restructure expected to take six months.

The BA said that 85% of its members had come out against a merger. "Many of our smaller members felt that they were particularly vulnerable should this acquisition proceed," said c.e.o. Tim Godfray.

His view was initially backed by the OFT in April when it found that the merger could result in higher prices and less favourable conditions for independents. But the CC said there was no evidence that a merged wholesaler would fix prices, and pointed to robust competition from Gardners and publisher-owned distributors.

Pat Seward, owner of the Carnforth Bookshop in Lancashire, said she was "disappointed but not surprised" by the ruling. "I can't see the merger doing anything other than taking away competition," she said.

Woolworths' c.e.o. Trevor Bish-Jones told The Bookseller that it would take six months for the newly merged Bertrams/THE to begin trading as a single wholesale operation. THE is owned by Woolworths' subsidiary EUK, which bought Bertrams for £29m in January.

Bish-Jones said: "We acquired the business because it was good quality and we now see an opportunity to expand the capabilities of the group into the book market." He refused to be drawn on the future of the remaining 150 THE staff in Stoke, many of whom face redundancy when the business moves to Bertrams' site in Norwich.

He also declined to comment on a successor to Bertrams c.e.o. Terry Reilly, who left in July. Commercial director Michael Neil has stepped in on an interim basis, but THE books chief Graham Rand, current BA president, is also tipped for the job. "Michael is a very strong candidate, but we are lucky we have so many good people across the business," Bish-Jones said.

The CC admonished wholesalers for misleading statements. They initially told the CC that they never reduced discount rates to individual retailers. This was found to be untrue, in particular when retailers switched preferred accounts. "We drew our serious concerns about the misleading nature of the statements made to us to the attention of the parties and their advisers," the CC said.

Bertrams woolies Graeme Neill Booksellers Association Tim Godfrey