3 Mar 2011

NZ bookstores survive initial restructure

10:41 pm on 3 March 2011

Administrators of the Whitcoulls and Borders book chains say no New Zealand stores will be closed in the initial phase of restructuring.

Australian-based REDGroup, which owns Whitcoulls, Borders and Bennetts, placed itself under voluntary administration in February.

In Australia, 321 REDgroup Retail staff have been made redundant following the announcement of the closure of 38 bookstores over the next three weeks.

The administrators say there are no redundancies planned in New Zealand as part of the restructure.

About 1400 people are employed by the chain in New Zealand.

The administrators say the decision not to shut stores is a reflection of New Zealanders' support of the Whitcoulls brand.

They say the 38 stores facing closure in Australia are the least viable of the 260 operated by REDgroup.