REDgroup administrator sells Whitcoulls, Borders NZ to Pascoe
May 26 (BusinessDesk) - The administrator of Australia bookseller REDgroup Retail has agreed to sell the ailing company's Whitcoulls and Borders New Zealand businesses for an undisclosed sum to James Pascoe Group, owner of the Farmers stores.
The two book chains - 57 Whitcoulls stores and five Borders stores, will be sold to Pascoe's Project Mark, said the administrator, Ferrier Hodgson partner Steve Sherman, in a statement.
REDgroup called in voluntary administrators in the face of shifting consumer shopping preferences, which has seen sales from bricks and mortar stores siphoned away by online rivals. The sale shows there's still demand for recognised brands, Sherman said.
Voluntary administration had played a key role in saving the businesses "by providing a stable environment to restructure the assets and provide the opportunity for a sale," Sherman said.
“The sale guarantees the future of the majority of stores and has preserved more than 900 jobs," he said. Pascoe Group "is known for reviving businesses and has a strong record of investment in their stores, stock and people."
Closely held Pascoes' retail brands include Pascoes, Farmers, Stewart Dawsons, Goldmark, Stevens, Prouds and Angus & Coote.