Borders Stores to Close

REST OF BORDERS STORES CLOSE, 315 JOBS GO

AAPJune 2, 2011, 1:16 pm

The last nine Borders book stores in Australia will close with another 315 jobs to be lost.

The administrator of Borders' parent company REDgroup on Thursday said no buyer could be found for the stores.

Administrator John Melluish of Ferrier Hodgson said a total of 315 staff would be affected by the closures, which will take place over the next six to eight weeks.

"The employees have shown extraordinary commitment in their efforts to keep the business going," he said in a statement.

"Unfortunately, the reasons for the store closures are beyond their control."

The last round of closures of 16 Borders stores, announced in April, put 300 full-time staff and 210 casuals out of work.

REDgroup, which also owns the Angus & Robertson bookstore chain, was put into the hands of the administrator on February 17.

The administrators say they have guaranteed all employee entitlements accrued from that date.

The payment of staff entitlements before the administration date depended on how much was made from sale of the stores' stock.

At a meeting on March 3, creditors were told REDgroup owed at least $118 million, with unsecured creditors owing $44 million.

REDgroup had just $1 million in the bank but employee entitlements totalled $7.8 million.

The final Borders stores - four in Melbourne, two in Queensland and one each in Canberra, Sydney and Perth - are expected to close on July 17.