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Related CoverageVIDEO Bookstoresclose with hundredsof jobs lost

The final chapter for 11 NSWbookshopsOne Borders outlet and 37 Angus &Robertson branches will close,making ...

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Eli GreenblatMarch 4, 2011

MORE than 2000 staff who work for the failed Borders andAngus & Robertson bookshop chains face a nervous month afterthe administrator last night decided to close 38 stores and make321 permanent and casual staff redundant.

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More than 300 staff are losing their jobs as bookstores Angus & Robertson, andBorders close 38 shops.

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Hundreds lose jobs as A&R,Borders stores close

Related CoverageVIDEO Bookstoresclose with hundredsof jobs lost

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VIDEO Bookstores close with hundredsof jobs lostMore than 300 staff are losing their jobs as bookstoresAngus & Robertson, and Borders close 38 shops.

The final chapter for 11 NSW bookshopsOne Borders outlet and 37 Angus & Robertson branches will close, making321 staff redundant, as a result of the owner REDGroup going into voluntaryadministration.

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Eli GreenblatMarch 4, 2011

MORE than 2000 staff who work for the failed Borders andAngus & Robertson bookshop chains face a nervous month afterthe administrator last night decided to close 38 stores and make321 permanent and casual staff redundant.

The swift nature of the closures and job losses, with REDgroupRetail falling into administration only on February 17, will sendshockwaves through the already fragile bookshop industry, whichis suffering from a downturn in consumer expenditure, risingcosts of living and intense competition from the internet.

Recovery firm Ferrier Hodgson informed staff yesterday that ithad decided to close 37 Angus & Robertson stores and oneBorders outlet after investigating the financial accounts of thecollapsed company and deciding to act quickly to protect theviability of the remainder of the store network.

The closure of 38 stores nationwide will result in 102 permanentfull-time and part-time workers and 219 casual staff losing theirjobs. The closures will happen over the next three weeks. Theywere the least profitable stores. The administrator was unable tosay whether there would be further rounds of store closures andredundancies.

Click here for a list of store closes and job losses.

Of the stores to be shut, 15 are in Victoria and include Angus &Robertson shops in Southland, Highpoint, Broadmeadows,Geelong, Corio, Camberwell, Epping and Melton. The store withthe biggest number of staff facing closure is Geelong, which has12 staff.

Seven stores are closing in Queensland, two in WesternAustralia and 11 in New South Wales. The only Borders to beclosed at this stage is in Rouse Hill, NSW.

''The restructure is necessary for the future of the business,''Ferrier Hodgson administrator Steve Sherman said last night.

''These stores were the least viable of the 260 REDgroup Retailoutlets and needed to be closed in order to protect as best aspossible the future of the business. As administrators we need totake these difficult decisions in order to give people at theremaining stores their best chance at a long-term future.''

At a creditors meeting on Tuesday, Mr Sherman warnedsuppliers and staff that it was possible some stores would needto be closed to safeguard the rest of the business and that hemight need to start shutting stores within 72 hours.

National Union of Workers state secretary Tim Kennedy saidthere was a very low level of union membership in the stores buthis union had members at a warehouse in Altona. The closure ofthe stores would probably lead to job losses at the Altonawarehouse because there would be a lower volume of booksthrough it.

Chief executive of the Australian Booksellers Association JoelBecker said: ''Some of the speculation had been that more shopswould close ! so 38 closing over three weeks gives some hopethat they [the administrators] will find ways to keep other A&Rand Borders stores open.''

He said he wasn't gloomy about the future of the traditionalbookshop: ''We don't think bricks and mortar bookshops aredying, but booksellers have to be smarter.''

With

BEN SCHNEIDERS, JASON STEGER

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Comments

I just want to state, before narrow minded people start saying "serves themright" that there are over 300 human beings out there today with no job. Thiscomes after taking unforgiveable abuse, both verbal and physical over thelast 2 weeks and now to be told that they have to stick it out untill therestores close to be eligible for their entitlements..which they won't see for atleast 2-3 months anyway. C'mon people, think about how you would feel ifthis happened to you or someone you love. I am one of these staff memberswho now don't have a job after 5loyal years to the company and would like to spend my last few weeks notbeing abused and taking the brunt for mistakes that were not made at storelevel in any of our stores.

Sharnabelle - March 04, 2011, 6:56AM

@Sharnabelle - Well said. I hope you and your colleagues have a relativelypain free couple of months leading up to the closures, and are able to findnew jobs quickly.

Geek | Melbourne - March 04, 2011, 7:51AM

Sharnabelle - March 04, 2011, 6:56AM

I don't think anyone would be suggesting that it would 'serve them right' forthe people at store level. Do you really think anyone believes that the peopleworking in the stores are making the management decisions about thedirection of the business?

I think one of Borders biggest mistakes was the 10cent bag charge, why notoffer paper bags that could be recycled? Or, if they had really wanted tocontribute to an environmental scheme, they could have rounded the pricesup to the full dollar and contributed that money. I imagine it would have beena greater amount than 10c a bag.

Rosie | Richmond - March 04, 2011, 7:48AM

Is this what the guy from Harvey Norman was trying to point out?

It's Time | Melb - March 04, 2011, 7:11AM

@sharnabelle, Australia has a low unemployment rate and a strongeconomy. These people will be able to get another job. They should read thebook "Who moved my cheese"

andrew | melbourne - March 04, 2011, 7:14AM

And as usual the poor workers will lose their jobs, entitlements and wages,while the financial wizards behind the company's failure walk away with theirbonuses all set to create a similar problem in the future.WHEN will regulators and government do something about these shams

Craig | Coburg - March 04, 2011, 7:24AM

Hardly surprising about the Southland branch. It is small and mainly stocksthe same books as KMart, Target & W but at vastly higher prices.

N.I. | Melb - March 04, 2011, 7:06AM

Stop spurting out the BS that these closures are because of pressure fromInternet sales. The only reason those 300 people are out of jobs today isbecause of the abysmal management that has lead REDGroup for the last xyears whilst under the reign of PEP. The leaders could see this coming,hence why the chairman left in the middle of last year, and the ManagingDirector left not even 6 months ago. The government should have to powerto put those fools in jail, they have ruined the lives of over 300 people, yet Ibet they wont even get noticed in the fallout.

Cameron - March 04, 2011, 8:08AM

Sharnabelle, I'm sorry to hear that you're a victim of corporate greed andmismanagement. Some may say "It serves THEM right", but THEM will walkaway with their golden handshakes while real people like you get nothing,and suburban shopping centres lose their book shops. Best of luck for thefuture.

David | Rowville - March 04, 2011, 8:09AM

Will the A&R and Borders on-line "stores" close? I understand they arehighly successful.

Chas of Donvale - March 04, 2011, 9:11AM

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More than 300 staff are losing their jobs as bookstores Angus & Robertson, andBorders close 38 shops.

Bookstores close with hundreds of jobs lost

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