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The stores of British Bookshops & Stationers look set to continue trading for at least a number of weeks while a buyer for the business is sought.
While buyers are considered by administrator Zolfo Cooper, restructuring specialist GA Europe is assisting it in running BBS to secure as much cash for the business’s creditors.
GA Europe is now the preferred creditor following its purchase of a debenture from private equity firm Endless, which had sold BBS to a management buy-out led by former managing director John Simpson.
The debenture related to a deferred payment that was owed to Endless by the MBO team that ensured Endless was the primary creditor of the business in the case of its failure.
Gavin George, managing director of GA Europe, said: “There is a bit of stock in the business and we are looking at new merchandise – including from other book specialists who might want to offload slow-moving stock.”
He also indicated there were some retail levers he could pull once he had evaluated the stores’ profitability. “We’ve changed absolutely nothing since we’ve been involved. We’ve not changed the range, the pricing, or the marketing strategy,” he said.
He added GA Europe needed to conduct negotiations with publishers over retention of title to existing stock in BBS’ stores.
Although he expected trading to continue for some weeks George accepted the tough prospects of selling the business as a going concern. “It’s a tough sector, let’s be honest”, he said.