Bookworld Saved!

Last month it was reported in The Dog Blog, that the famous bookstore chain, BookWorld, BW!, and Bargain Books was to close its doors. We are happy to announce that the firm was recently sold and the chain will survive for now at least.

The Scottish owners of the chain went into administration several weeks ago, and although some branches closed almost at the time, the buyout means that the remaining 160 jobs in Scotland and England are now safe.

The buyout happened when parent company David Flatman Ltd, sold its retail division to The Works, thereby, saving a total of 26 shops across the country.

A separate management buyout team has purchased the company's publishing arm, Lomond Books. Joint administrator, Tom MacLennan, said; “the sale is excellent news for staff, customers, suppliers and creditors. It will mean continuity of employment for 160 staff and a very positive future for the two businesses."

Derek Hine, chief executive of The Works, said; "Bookworld has long been renowned for the quality of its staff and we are pleased to welcome 155 colleagues into the business."

Borders Threat to Quit Scotland

Bookshop giant Borders last week threatened to close all of its stores in Scotland and the UK.

The surprise announcement, which potentially threatens up to 2000 jobs across the country, could see the sale of one of the most important book chains who have bases in Edinburgh and Glasgow city centre.

The US-based company has had its flagship store at the former Royal Bank of Scotland site in Glasgow’s Buchanan Street since 1998, and the prospect of the store disappearing from the A-listed building will be a massive blow to Glasgow.

They also have a store in Fort Kinnaird on the outskirts of Edinburgh, as well as four other smaller stores around Scotland.

The threat to sell off the 71 chain of UK stores follows an announcement in February that Borders' overseas arm - 70% of which is concentrated in the UK - lost over a quarter of a million pounds in the last trading year, against a profit of £6million the previous year.

The company said it was considering the sale as part of a "strategic review" brought on by the "challenging retail environment".

The news also comes after HMV, which owns Waterstone's, issued its second profits warning since the start of the year and announced a rescue plan to try to boost flagging sales, which could see the closure of up to 30 Waterstone's outlets.

Bookworld, BArgain Books, and BW are also closing branches throughout Scotland, as reported here a couple of weeks ago, as the industry by the whole attempts to stave off competition from online book outlets.

Edinburgh Bookshops Under Threat

Edinburgh-based David Flatman Ltd, the firm behind the bookstore chains Bargain Books, Bookworld and bw has gone into administration. It blamed competition from the internet and supermarkets for its decision to shed over 40 jobs and place a threat over another 360.

A spokesman said that sustained competition had “made it increasingly difficult to maintain its large network of high street stores.”

The job losses meant eight of the firms existing fifty book stores closed immediately upon announcement, four at the end of February, with the threat of more if a suitable buyer cannot be found, although there has already been substantial interest from possible buyers.

The company, which still has its headquarters in Edinburgh, has a current turnover of around £30m. After its creation in 1977 the business made its name by selling established authors and titles at competitive prices.

But huge increases in online book sales from sites like Amazon, has put pressure on the Bargain Books and it’s sister stores. Amazon remains dominant with around 75% of the UK online book sales market.

Joint administrator Tom MacLennan said: "Bookworld, Bargain Books and bw are long-established brands in the UK book retailing sector. The business has almost single-handedly developed the market for high street discount book selling."

Whilst competition from the internet and supermarkets has triggered the administration, a turnover of £30m clearly indicates that there is strong demand for discount stores on the high street.

The stores up for immediate closure include Dumfries, Greenock, Stirling, Inverness, Edinburgh Princes Mall, Harrow, Tunbridge Wells and Romford.

Those being closed at the end of February are in Glasgow, Bristol, Perth and Manchester.

The news comes hot on the heels of Waterstone's owner, HMV, announcing it has been struggling to fend off competition from the internet and superstores.

Related Links
www.bbwbooks.co.uk