RedGroup to close 38 stores

A couple days ago I predicted that all 200+ bookstores owned by Redgroup Retail would close. It looks like I might be wrong.

The court appointed administrators Ferrier Hodgson announced yesterday that 37 Angus & Robertson stores and only 1 Borders store will close. Also, none of the Whitcoulls stores in New Zealand will be affected. The closing stores are scattered across Australia and were the least profitable.

I'm still expecting the rest of the stores to be sold off or close. This company owes significantly more than the value of stock on hand, and frankly, RedGroup can't operate at a profit. I'm betting Whitcoulls will be sold off as a whole, but I don't what will happen to the Australian bookstores.

I'm also expecting Redgroup's part ownership of Kobo to be sold off. That might be worth something - if you can find an interested buyer.

via Bookseller & Publisher

About Nate Hoffelder (11375 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."

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