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A third distributor has suspended supplies with Borders UK, while wholesaler Gardners is also understood to have ceased trading with the chain. Meanwhile, administrator BDO Stoy Hayward has refused to comment on reports that it could be appointed as administrators of Borders, if the retailer was to collapse.
Publishers received an email from Hachette-owned Littlehampton Book Services today (23rd November), saying that it was taking the temporary measure to withhold supply in light of the various media reports suggesting the retailer could be put into administration this week.
Phil McCloy, head of credit management for LBS, said via email: "As a precautionary measure we have suspended supplies while we clarify the situation, in addition we will provide you with an up date account reconciliation shortly."
This stance follows that last week of Random House-owned The Book Services Grantham Book Services, which said the two distributors had moved to "immediately stop Borders UK Ltd and Book Etc accounts" after Borders blocked a banked cheque payment.
This means trading between Borders UK and at least two of the big four publishers - Hachette UK and Random House - as well as the Faber-led Independent Alliance, is currently on stop.
Despite this publishers spoken to by The Bookseller were still prepared to be optimistic. One sales director said: "We really hope they can get through this, everyone will try to help them. But if we don't think we are going to be paid, we are going to have to stop supplying them."
http://www.independent.co.uk/news/business/news/borders-uk-lines-up-acco... target="_blank" title="The">http://www.independent.co.uk/news/business/news/borders-uk-lines-up-acco... Independent reported yesterday [Monday] that Borders had lined up the business, if it could not find an 11th hour rescue deal. But a spokesperson for BDO said: "We haven't been appointed as administrators so we are not in a position to comment." The newspaper claims that an administration is imminent and could happen as soon as tomorrow [Tuesday].