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Borders Becomes Latest Credit Casualty

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Book retailer Borders has effectively put itself up for sale after becoming the latest victim of the global credit crisis.

Borders Group, which owns 1,100 shops around the world, has appointed JP Morgan and Merrill Lynch to "explore strategic alternatives" after running out of ways to raise fresh funding.

http://www.telegraph.co.uk/money/main.jhtm...cnborder120.xml

they must be in bad shape.

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If more people bought and read books we could have avoided the credit crunch.

Now Borders itself is up for sale. That's ril dummass.

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Do all businesses run on permanently rolled over loans? And l dont mean operational cash flow buffer overdraft, but literally the've already spent the next 5 years profits and spend each and every day trying to keep up with loan repayments. How is this a sustainable way to run anything??

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Do all businesses run on permanently rolled over loans? And l dont mean operational cash flow buffer overdraft, but literally the've already spent the next 5 years profits and spend each and every day trying to keep up with loan repayments. How is this a sustainable way to run anything??

its seems thats the new in.

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If more people bought and read books we could have avoided the credit crunch.

Now Borders itself is up for sale. That's ril dummass.

No, because they would all have bought "How to be a Property Millionaire".

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Do all businesses run on permanently rolled over loans? And l dont mean operational cash flow buffer overdraft, but literally the've already spent the next 5 years profits and spend each and every day trying to keep up with loan repayments. How is this a sustainable way to run anything??

Seems to be the private equity approach to business, get a business so in debt it never makes a profit. Also Borders is paying 12.5% interest to a hedge fund! All is not what it seems I suspect.

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No, because they would all have bought "How to be a Property Millionaire".

But if they bought and read economics and history text books, and learnt about previous crashes like the South Sea Bubble and the Dot Con schenanigans they'd have seen through the folly of "How to be a property millionaire".

You know the saying: "If you think education's expensive try ignorunts"

Where's Bill Still?

Edited by nmarks

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But if they bought and read economics and history text books, and learnt about previous crashes like the South Sea Bubble and the Dot Con schenanigans they'd have seen through the folly of "How to be a property millionaire".

You know the saying: "If you think education's expensive try ignorunts"

Where's Bill Still?

If only that were true*.

*The first bit not the last. Tulipmania was before the South Sea Bubble. And you will probably find with the latter, the involvement was mainly otherwise educated people (Newton, for instance).

I am afraid you have a higher opinion of humanity than I do.

Telling a child he will burn his fingers on a hot stove doesn't work, so getting him to read a book about it?

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If only that were true*.

*The first bit not the last. Tulipmania was before the South Sea Bubble. And you will probably find with the latter, the involvement was mainly otherwise educated people (Newton, for instance).

I am afraid you have a higher opinion of humanity than I do.

Telling a child he will burn his fingers on a hot stove doesn't work, so getting him to read a book about it?

There'll always be individuals who'll take risks against their own better judgement, but my point is the more people get an education in these matters the more can spot folly like this property bubble before it gets out of control. The more of us there are the louder we can shout.

It's just a shame that mass communications like the internet - that could have helped sound the warnings quickly - came to the fore when the property bubble had already well and truly got significant momentum going. I suppose the media was there and could have done something but then again that's owned by vested interests. Just pray to God no-one ever gets complete ownership and control of the internet I suppose.

Anyway, where's Bill Still?

Edited by nmarks

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Good enough - my local Borders plays loud rap music all the sodding time when you are trying to browse for a book to read!

It makes it impossible to glance their shelves and you end up walking out. The staff seem to think it is hilarious when customers complain about it so if they go bust and they are out on their ears then, sorry, but good enough.

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In American they would have Chapter 11 as an option.

(Coat already on.)

I was going to say thats a massive book loss or they were cooking the books..

Shall we share the taxi?

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Guest Bart of Darkness
I was going to say thats a massive book loss or they were cooking the books..

How could I have missed cooking the books? I must be slipping.

It's currently pouring down here so a taxi sounds like a good idea.

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Good enough - my local Borders plays loud rap music all the sodding time when you are trying to browse for a book to read!

It makes it impossible to glance their shelves and you end up walking out. The staff seem to think it is hilarious when customers complain about it so if they go bust and they are out on their ears then, sorry, but good enough.

I'm afraid your local Borders has already been sold. The UK and IE arm of Borders was sold off for a surprisingly small amount last year. That's the reason for the one off tax loss mentioned.

They're still trading under the Borders name, but anything that happens to the US side of things won't affect them.

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I thought the plans for a sell-off had been shelved.

Nope. It's already happened. Borders UK and IE were bought up by Risk Capital Partners back in September last year, for 10 mill upfront and another 10 mill contingent on performance.

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So they sell books? That explains a lot. Never been in one.

Always vaguely wondered what their big sheds out on the retail parks held, assumed it was more ghastly identikit leisurewear, like every other shed out there.

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There was an American on the Matthew Wright show this week. When asked why he spent so much time in the UK he declared it was because his fellow countrymen insisted on getting stupider and forgetting how to read. Borders' problems summed up nicely methinks.

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Nope. It's already happened. Borders UK and IE were bought up by Risk Capital Partners back in September last year, for 10 mill upfront and another 10 mill contingent on performance.

Let me repeat that:

I though the plans for a sell-off had been shelved.

Ho ho ho.

Edited by Scunnered

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Let me repeat that:

I though the plans for a sell-off had been shelved.

Ho ho ho.

You had to dust the cover off that one and type it bold. Time for me to sign off now and go to see if eric has turned a new page. No doubt it will be the same old story.

I'll get my coat.

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This is a change. I remember stories last year about selling of the UK part of Borders. (for example see here:

http://www.reuters.com/article/consumerpro...44560620070924).

Now it seems the whole chain is up for sale.

I suppose books come quite low down the list of priorities when economic depression hits.

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  • 294 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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