posted Thursday 17 February 2011 @ 1:25 pm PDT
Australia’s dominant bookselling organization REDgroup Retail has been placed into voluntary administration by its owner, private equity group PEP, just a day after Borders Group filed for bankruptcy. The group includes Angus & Robertson, Borders in Australia, and New Zealand’s Whitcoulls, with a combined staff of about 2,500. Angus & Robertson’s history in Australia dates back to 1886, and Whitcoulls dates back to 1882.
Ferrier Hodgson partners were appointed as administrators, and FH partner Steve Sherman plans for business as usual while administrators assess the business’s finances and prepare to meet with creditors. The flagship Borders franchise plans to continue operations in the short term. The failure is not linked to the US Borders, which is owned by a different corporation, but occurred for similar reasons: the market shift to Internet purchasing and soft sales in general.
See Brisbane Times for more.