Singapore Borders Closed
Saturday, 20th August 2011
Borders closed its flagship (and most iconic store) store at Wheelock Place. According to Borders Manager the rent cheque for August was not paid in the beginning of the month as the cheque was issued but there were some errors on it - the amount and words did not reflect the amount and digits. The landlord requested a cashier's order but the cashier's order was not delivered within the timeline. Borders staff at Wheelock Place were seen clearing the shelves from outside.
The Borders bookstore currently has an inventory worth about S$2.8 million which ordinarily would sell for S$4.5 million. And if the company winds up, it may only receive S$1.4 million from a "fire sale". There are about 1,200 gift card holders with some S$400,000 in credit with the bookstore. Borders is also hoping to get back some of the S$1.8 million in rental deposits but it is S$572,100 behind in rental obligations. And there are also payroll and utilities bills that need to be paid. So it is really in the RED. By the way, its parent company in Australia had a rather in-auspicious name of REDgroup Retail.
Photo Credit: Flickr
Singapore's Borders Bookstore had stood strong even as its US and Australia branches closed one by one, struggling to keep up with digital media. But seems like cracks are starting to show.