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20-08-2011, 06:30 AM
The Straits Times
Aug 20, 2011
Borders' Wheelock store: It's the end
Bookstore ordered to vacate Orchard Road mall by next Tuesday
By Jamie Ee Wen Wei
BORDERS' flagship store at Wheelock Place will close for good, ending days of speculation over the fate of the 13-year-old bookstore.
It has been ordered to remove its stocks and vacate the Orchard Road shopping mall by next Tuesday. Its Parkway Parade branch will, however, stay open.
The spotlight has been on the bookstore since its Wheelock outlet closed suddenly on Tuesday. A statement from the company that day put the closure down to a dispute with its landlord, and assured customers and business partners that it was working to get things in running order again as soon as possible.
But news of its definite end came yesterday in a statement from its appointed interim judicial manager, Mr Tim Reid of recovery firm Ferrier Hodgson.
Mr Reid, whose job is to draft proposals to prove in court that Borders' business is still viable, conceded that Borders Singapore had been running at a loss, and said the 'large rent' at Wheelock Place had put a strain on the company.
He said the sudden closure this week did indeed come out of a dispute with its landlord, Wheelock Properties.
The company was late in paying its rent this month, and the amount written on the cheque was incorrect. A cashier's order for the owed sum was subsequently handed over, but Wheelock Properties, having set legal action in motion, was unwilling to reverse its action, he said.
'The company is therefore unable to reopen its store in Wheelock Place, which it has occupied for the last 13 years,' the statement from Ferrier Hodgson said.
Mr Reid told The Straits Times that the landlord was legally entitled to re-enter the premises because of the default in payment.
Earlier media reports that the company was two months behind in rent were off-base, he said.
When contacted yesterday, Wheelock Properties again declined comment. It would only say that the matter was being handled by its lawyers.
Yesterday, staff at the Wheelock outlet were clearing out shelves and packing books into boxes.
The bookstore will hold a sale to clear its stock at a 'significant discount' once it finds a suitable location, the statement from Ferrier Hodgson said.
One regular customer, Dr S.M. Chew, 46, was sad to learn of the store's end. He said: 'I will miss it. I used to come once or twice a month to browse. It was probably one of the largest stores here.'
The Parkway Parade branch showed little hint of trouble yesterday. It was still business as usual.
Mr Reid said Borders has enjoyed loyalty from its staff and customers during its years of operation here, and that he looked forward to continued support for its Parkway Parade store.
Ms Stephanie Poh, the general manager of Parkway Parade, described the four-year-old branch as a 'valued retailer' and said Parkway Parade would continue its support for the company and work with Mr Reid while he considered its future.
For months now, Borders Singapore has tried to distance itself from the debt problems of its Australian and United States offices. Its statement on Tuesday said the closure of the Wheelock store had nothing to do with the trouble in its overseas branches.
In February, Borders Singapore's Australian parent, REDgroup Retail, entered voluntary administration, mired in debt. All Borders outlets Down Under have shut down. The Borders Group in the US, which sold the Singapore stores to REDgroup in 2008, declared bankruptcy in February.
jamieee@sph.com.sg
Aug 20, 2011
Borders' Wheelock store: It's the end
Bookstore ordered to vacate Orchard Road mall by next Tuesday
By Jamie Ee Wen Wei
BORDERS' flagship store at Wheelock Place will close for good, ending days of speculation over the fate of the 13-year-old bookstore.
It has been ordered to remove its stocks and vacate the Orchard Road shopping mall by next Tuesday. Its Parkway Parade branch will, however, stay open.
The spotlight has been on the bookstore since its Wheelock outlet closed suddenly on Tuesday. A statement from the company that day put the closure down to a dispute with its landlord, and assured customers and business partners that it was working to get things in running order again as soon as possible.
But news of its definite end came yesterday in a statement from its appointed interim judicial manager, Mr Tim Reid of recovery firm Ferrier Hodgson.
Mr Reid, whose job is to draft proposals to prove in court that Borders' business is still viable, conceded that Borders Singapore had been running at a loss, and said the 'large rent' at Wheelock Place had put a strain on the company.
He said the sudden closure this week did indeed come out of a dispute with its landlord, Wheelock Properties.
The company was late in paying its rent this month, and the amount written on the cheque was incorrect. A cashier's order for the owed sum was subsequently handed over, but Wheelock Properties, having set legal action in motion, was unwilling to reverse its action, he said.
'The company is therefore unable to reopen its store in Wheelock Place, which it has occupied for the last 13 years,' the statement from Ferrier Hodgson said.
Mr Reid told The Straits Times that the landlord was legally entitled to re-enter the premises because of the default in payment.
Earlier media reports that the company was two months behind in rent were off-base, he said.
When contacted yesterday, Wheelock Properties again declined comment. It would only say that the matter was being handled by its lawyers.
Yesterday, staff at the Wheelock outlet were clearing out shelves and packing books into boxes.
The bookstore will hold a sale to clear its stock at a 'significant discount' once it finds a suitable location, the statement from Ferrier Hodgson said.
One regular customer, Dr S.M. Chew, 46, was sad to learn of the store's end. He said: 'I will miss it. I used to come once or twice a month to browse. It was probably one of the largest stores here.'
The Parkway Parade branch showed little hint of trouble yesterday. It was still business as usual.
Mr Reid said Borders has enjoyed loyalty from its staff and customers during its years of operation here, and that he looked forward to continued support for its Parkway Parade store.
Ms Stephanie Poh, the general manager of Parkway Parade, described the four-year-old branch as a 'valued retailer' and said Parkway Parade would continue its support for the company and work with Mr Reid while he considered its future.
For months now, Borders Singapore has tried to distance itself from the debt problems of its Australian and United States offices. Its statement on Tuesday said the closure of the Wheelock store had nothing to do with the trouble in its overseas branches.
In February, Borders Singapore's Australian parent, REDgroup Retail, entered voluntary administration, mired in debt. All Borders outlets Down Under have shut down. The Borders Group in the US, which sold the Singapore stores to REDgroup in 2008, declared bankruptcy in February.
jamieee@sph.com.sg
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