[November 23, 2009] Borders takes out a cheap ad as sale fails Tweet Nov 22, 2009 (Financial Mail on Sunday - McClatchy-Tribune Information Services via COMTEX) -- The sale of book and CD chain Borders, which began four months ago, appeared to be floundering this weekend. WH Smith is understood to have pulled out of a possible purchase of the 36 shops and Borders' corporate finance adviser Clearwater resorted to taking a small ad in a financial newspaper last week flagging up the sale of "a chain of book and entertainment stores." Borders is controlled by managing director Philip Downer and backed financially by Valco, the private equity arm of restructuring firm Hilco. Books etc, also part of Borders, is holding a closing-down sale at its remaining eight stores, which look likely to shut in the new year. It is believed that management at the group, which has a turnover of about GBP150 million, may sell its online trading site and stores separately. The arrival of cheaper online books and entertainment sellers such as Amazon and play.com has hit book chains and Borders is no exception. There are also fears about the possible growth of eBooks using Sony's Reader. An auditor's report by accountant Ernst & Young filed at Companies House in August warned of "material uncertainties" about the company's ability to continue trading, based on its accounts ending February 2008. Meanwhile, Blacks Leisure's landlords are tomorrow expected to vote on a plan to restructure the group that if successful would lead to the closure of 101 stores. To see more of the Financial Mail on Sunday, or to subscribe to the newspaper, go to http://www.financialmail.co.uk. Copyright (c) 2009, Financial Mail on Sunday, London Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. [ Back To TMCnet.com's Homepage ]