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Philip Downer, chief executive of Borders UK, has said that it is continuing to "market" its Books Etc stores, but "no immediate disposals" were expected. The comment came in response to an Independent news story this morning (22nd May) which reported that Borders UK had appointed a restructuring company to advise it on how to "close" some of its underperforming stores.
According to the Independent, Borders UK has been working with RSM Bentley Jennison to review a range of potential restructuring options. Downer would not comment on this.
He said: "Borders UK has disposed of the majority of the Books Etc stores over the last twelve months, and the remaining small stores continue to be marketed. Any change to the current portfolio will be of course communicated first to our staff and to our suppliers, but no immediate disposals are anticipated." There are 10 "small stores", including Books Etc and Borders Express, left in the group.
Waterstone's bought eight Books Etc stores in London from Borders UK, in August last year. Last December, chairman Luke Johnson told the newspaper that the chain had been "steadily rationalising [its] Books etc store base". At that time Johnson denied an Independent newspaper suggestion that Borders UK was considering a pre-pack administration specifically to reduce liabilities on its Books etc stores.