RedGroup Retail will be dead soon

The RedGroup Retail bankruptcy situation has taken a turn for the worse.Administrators for the now bankrupt Australian bookstore chain conglomerate announced that gift cards would no longer be valid after 3 April. Anyone who doesn't spend them will be SOL.That's not a good sign.

Ferrier Hodgson have basically said that there won't be a RedGroup in the not too distant future. This is a clear sign that the best we can hope for is that parts of the company will be sold off, but that assumes that someone will want a bookstore chain in this economy.

Still no word yet on what will happen to Redgroup's interest in Kobo.

If you're just getting into the story, let me give you some background. RedGroup Retail is an company that was formed when a private equity firm bought up several Australian bookstore chains: Angus & Robertson, Borders AU, and Whitcoulls (in New Zealand). Due to the poor economy and the private equity firm's general ineptitude, Redgroup was run into the ground. They filed for administration back in February.

For past stories on the Redgroup bankruptcy, click here.

via Bookseller & Publisher

About Nate Hoffelder (11588 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."

1 Comment on RedGroup Retail will be dead soon

  1. Thus again proving the only goddammed thing private equity groups understand are *spreadsheets*. They should stay the hell out actual businesses.

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