LONDON (Reuters) – Bookseller Borders UK is considering calling in administrators after becoming the latest British high street victim of recession.
Late on Wednesday Borders filed court documents giving notice that it intended to appoint BDO LLP as administrator. The firm is owned by Valco Capital Partners, the private equity arm of restructuring specialist Hilco.
Borders, which trades from 45 stores and employs over 1,000, has been struggling to raise enough cash to trade through the key Christmas period, according to newspaper reports.
The firm, which also trades as Books Etc, has faced intense competition from internet players and supermarkets.
“We have been asked to consent to the appointment of an administrator. We have given that consent and as far as we are aware right now no administrator has been appointed,” Hilco founding partner Paul McGowan told Reuters.
He said Borders still has 2 million pounds ($3.34 million) of headroom in its lending facility with Hilco.
Valco purchased Borders in July from private equity firm Risk Capital.
The possible administration of Borders comes a month after First Quench, owner of the Threshers off-license chain, went into administration.($1=.5996 Pound) (Reporting by James Davey and Sinead Cruise; editing by Paul Sandle and Jon Loades-Carter)