Whitcoulls, Borders owner talking to their banker

TVNZ are reporting:

REDgroup Retail, operator of bookstore chains Whitcoulls and Borders, is talking to its financiers in a bid to get a waiver from an expected breach of banking covenants in August.

The company said that following consideration of its most recent management accounts, the board has formed the view that the company is likely to breach two out of three of its banking covenants when they are tested on August 28.

So what's the ebook angle? REDgroup are one of the corporate investors in Kobo as well as the partner for the Australian and New Zealand markets. They're now the second Kobo investor (along with Borders US) who can't afford to invest more money in Kobo, which means Kobo don't have a safety net.

About Nate Hoffelder (11480 Articles)
Nate Hoffelder is the founder and editor of The Digital Reader: "I've been into reading ebooks since forever, but I only got my first ereader in July 2007. Everything quickly spiraled out of control from there. Before I started this blog in January 2010 I covered ebooks, ebook readers, and digital publishing for about 2 years as a part of MobileRead Forums. It's a great community, and being a member is a joy. But I thought I could make something out of how I covered the news for MobileRead, so I started this blog."

2 Comments on Whitcoulls, Borders owner talking to their banker

  1. I have just come back from the Borders shop in Riccarton. Found out while there that Borders is operating a real scam if you try to use a gift voucher, then they say that $1 on the gift voucher is only worth 50 cents and you have to buy twice as much to use the voucher.

    This is contrary to the Consumer Guarantees Act but Borders/ Whitcoulls will be thinking that a normal gift voucher is worth say $40 to $50 so no one will take them to the Disputes Tribunal.

    How about we all get togther and pool the cards together and take the bastards on. I am prepared to organise it as it is just an Australian corporate scam on New Zealand consumers.

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