Borders loses 16 more stores

THE administrators of Borders have announced the closure of 16 more stores in Australia, adding to the one Borders and 48 Angus and Robertson’s stores already shut in the aftermath of parent company’s REDgroup’s collapse.

The closures, to happen over the next eight weeks, would mean 310 permanent and 200 casual staff would lose their jobs, said the administrator, Ferrier Hodgson. It would leave REDgroup with nine Borders and 67 Angus and Robertson stores in Australia.

"Through these progressive restructures we are moving the business towards a more sustainable model," said an administrator, Steve Sherman.

"It is my hope that the resulting business is able to stand on its own two feet as well as being more attractive to any potential buyer."

Seven stores in NSW would close; six in Victoria, two in Queensland and one in South Australia, Ferrier Hodgson said.

In NSW, the locations at Chatswood, Hornsby, Kotara, Macarthur, Macquarie, Parramatta and Tuggerah will be affected.

The turmoil surrounding the decline of REDgroup accelerated yesterday when 25 Angus and Robertson franchised stores severed their franchise agreements with the parent to protest at the handling of the firm’s slide into administration.

The group of booksellers was upset over the treatment of gift vouchers, which initially required customers to spend one dollar for every dollar of credit redeemed. Ferrier Hodgson then said gift vouchers would no longer be accepted after April 3.