KEY POINTS:
Borders bookshops have today confirmed it will be business as usual in its New Zealand stores.
The US-based parent Borders Group announced last week its bookshops in New Zealand, Australia and the UK are up for sale as the parent offloads the international stores.
Borders Asia Pacific managing
director John Campradt today emphatically denied the New Zealand stores will close.
"They're too good a business and they're too much of an opportunity for someone to purchase and that is not even being discussed by anybody. Given the level of interest we're starting to get you can see that it will just not be an option," said Campradt.
Borders currently run three New Zealand stores in Auckland, Wellington and Christchurch. A fourth store opens tomorrow at Sylvia Park in Auckland, with a further store opening in Albany by year end.
New Zealand sales figures were over $17 million in the 2006 financial year, with a gross profit of nearly $5 million.
Campradt confirmed the expansion plans in New Zealand and Australia will proceed while the sale process takes place.
Potential purchasers could buy the New Zealand or Australian operations separately or as a group and could negotiate a licensing agreement for the Borders brand, Campradt said.
"I don't know what's going to happen yet and I don't know who are likely suitors. We are already getting some interesting phone calls from various private equity groups and other retailers in the marketplace," said Campradt.
No timeframes are being set but if a sale goes ahead it is likely to be completed in before Christmas, said Campradt.
"We think that four to six months is a reasonable time to assess what's happening in the marketplace and understand who's interested and you could potentially have a sale done in that period of time as well."
Borders Group chief executive George Jones said it will be focusing on the US market to drive growth after announcing a fourth quarter loss last week.
"Our company's performance has fallen short in an industry that is increasingly competitive, technology driven and price sensitive," said Jones.
Jones said: "We've seen solid performance in our Asia Pacific stores and improving trends in the UK and Ireland.
"Still, for us to be successful in reaching the goals we have for the domestic superstore business, we must significantly reduce investment in the International segment and explore strategic alternatives."
KPMG Corporate Finance has been appointed to manage the sale of the New Zealand and Australian assets.
