X

Failed book retailer had only $1m in the bank as administration loomed.

This is despite owing staff $7.8m in wages and other entitlements, a creditors meeting for Borders Australian business heard this morning.

Mr Steve Sherman of Ferrier Hodgson, who is acting as the administrator said REDgroup, owner of Borders and Angus & Robertson, had total cash of $6.4 million and debt of at least $118 million. Its creditors are owed a bill to the tune of $44 million. 

Last month Borders, which has struggled with the long-term shift towards digital sales against rivals like Amazon, admitted it was on the brink of bankrupcy after failing to reach a deal with bankers over liabilities of more than $1bn. 

Several stores are to be closed completely and staff will be informed in the next 72 hours which ones will be affected. 

It is unlikely to be handed back to its private equity owners under a deed of administration, said Mr Sherman.  

Founded in 1971 by two Michigan brothers, Tom and Louis Borders, the group is said to have missed payments to landlords and publishers.

JBL TourPro3 728x90 No Turning Back: Borders Debts Pile
hitachi banner 728x90 No Turning Back: Borders Debts Pile
Westan 728x90px No Turning Back: Borders Debts Pile
Olimpia Splendid Unico Cooling 728x90 1 scaled No Turning Back: Borders Debts Pile
WEB BANNERS5 scaled No Turning Back: Borders Debts Pile
Litheaudio 728x90 No Turning Back: Borders Debts Pile
241211 SAV Ruark CNewsJan Leader No Turning Back: Borders Debts Pile
MaxRanger4K Leaderboard 728x90 No Turning Back: Borders Debts Pile
Haier 728x90 1 No Turning Back: Borders Debts Pile
FA 979 HN MDF SG14 14gen 728x90 1 No Turning Back: Borders Debts Pile
728 x 90 No Turning Back: Borders Debts Pile
VALENTINES 2025 Banner 728x90px No Turning Back: Borders Debts Pile
BlueAnt 4SQM PumpAirUltra 728x90px No Turning Back: Borders Debts Pile
728x90 No Turning Back: Borders Debts Pile
728x90 we see oled CN No Turning Back: Borders Debts Pile
PAN2664 ChannelNews Banner CM3 728x90px V1 No Turning Back: Borders Debts Pile
Belkin Screen Protection 728 x 90 No Turning Back: Borders Debts Pile
denon perl white 728x90 1 No Turning Back: Borders Debts Pile
728x90 No Turning Back: Borders Debts Pile
Emberton III BLACK 728x90 without CTA@2x No Turning Back: Borders Debts Pile


YOU MAY ALSO LIKE