Contrary to what some are saying, this group is not gone. It is now under voluntary administrators.
This group through its bookshops sells about 30% of Australian book industry, and it also controls the largest newsagency franchise of over 50 newsagencies, mainly in NSW and Queensland, although they do have some newsagencies in Victoria.
Last year this group announced a record profit, this year they lost about $43 million. Since the group is owned by a bigger organisation Pacific Equity Partners, who are huge and could easily afford these loses. What has happened is that Pacific Equity Partners has made a decision to get out of this market.
Since in Australia, most voluntary administrations fail as few agree to write off debt, I expect that Borders, Angus and Robertson, Supanews etc will be split and sold off. Most of the shops will be sold, and the unprofitable stores will be closed. So most of our clients will be largely unaffected. Since we have many clients in this group, I am wondering how badly we will be affected.
