Borders bookshops may face chapter of closures
Luke Johnson's plan to rescue Borders, the UK's third-biggest book chain, is turning into more of a saga than he hoped.
The Channel 4 chairman bought the company from its US parent, Borders Group, two years ago in a £20 million deal.
His Risk Capital Partners beat off competition from WH Smith and others to secure the prize.
Today it emerged that he has appointed a restructuring company to advise on shutting some of the worst-performing stores.
RSM Bentley Jennison is said to be reviewing a range of options, raising doubts about their long-term future. Borders has been hit by competition from supermarkets and the internet. Johnson believed that Borders could survive because the book-buying public wants to browse and get advice.
At the time he said: "I wouldn't have done the deal if I didn't believe in the future of bookshops." Risk Capital Partners paid
£10 million upfront with the rest to come later depending on performance.
The number of stores — 41 two years ago — has already fallen. RSM may advise that the least profitable remaining stores, thought to be those in out of town retail parks, are closed.
