4 Mar 2011

Whitcoulls to stay open, staff keep jobs for now

9:01 am on 4 March 2011

Booksellers New Zealand says the decision not to close any Whitcoulls, Borders and Bennetts bookstores in New Zealand is good news for the industry.

The future of the stores has been uncertain since the Australian-based owners, REDgroup, put themselves into voluntary administration last month.

The administrators say 38 REDgroup bookstores are being closed in Australia, with the loss of 321 jobs; but no redundancies or store closures are planned in New Zealand as part of initial restructuring.

Booksellers New Zealand chief executive Lincoln Gould says the administrators are planning a meeting in five weeks' time, at which most people are hoping to hear that the company has got itself into a state where it will be able to keep trading and stay open.

The National Distribution Union, which has about 30 of its members working for the group, says it is pleased their jobs are safe for the moment and hopes the stores can be sold to a new owner.