NZ bookstore chain saved from going under

James Pascoe Group, a privately owned NZ retail business purchased the REDgroup NZ business in addition to picking up its 57 Whitcoulls stores and five Borders stores.

The stores were the remaining assets of the REDGroup threatened with closure when the company went broke. NZ investor, Geoff Spong in April, picked up other stores, such as the Bennett’s chain of eight university-based bookstores. Australia-based LS Travel Retail Pacific snapped up a portfolio of ten Whitcoulls bookstores located in NZ airports.

The result protects the NZ book industry from online predation, giving readers the opportunity to browse and buy books instore and not necessarily online. The Australian branch of the REDGroup is still struggling to find a buyer.

Steve Sherman, the administrator of REDGroup, said the sale indicates there is still a market for quality assets with widely recognised brands like Whitcoulls and Borders. REDgroup’s voluntary administration process played a key role in saving the businesses as it provided a stable environment to restructure the assets.

“This was an integral objective of the process and the support of the group’s employees and major suppliers had contributed to the successful outcome,” he said.

Following the Whitcoulls and Borders sale, the voluntary administration process has helped preserve over 1,050 jobs and provided business continuity in all operations.

Sherman says the sale guarantees the future of the majority of stores and “The James Pascoe Group is known for reviving businesses and has a strong record of investment in their stores, stock and people.”

The Group will be approaching landlords shortly to discuss ongoing tenure and will also be engaging with employees with regard to the terms of employment.