ID :
186083
Thu, 06/02/2011 - 14:14
Auther :
Shortlink :
http://m.oananews.org//node/186083
The shortlink copeid
Last Borders bookstores to close
More than 1300 employees will have lost their jobs at Borders bookstores after its remaining nine Australian shops close next month.
Borders administrators Ferrier Hodgson announced on Thursday it could not find a buyer for the last nine stores and would close them over the next six to eight weeks at a cost of 315 jobs.
A total of 1363 jobs will have been lost from the closure of Borders' 64 stores since owner REDgroup called in the administrators in February.
Ferrier Hodgson said the future of the remaining 59 Angus & Robertson stores, which are also owned by REDgroup, is yet to be decided.
The administrators have guaranteed payment of employee entitlements earned since they were appointed on February 17, but anything earned before then will depend on the liquidation of the stores' stock.
The Borders stores - four in Melbourne, two in Queensland and one each in Canberra, Sydney and Perth - are expected to close by July 17.
Borders staff have been barred from speaking to the media and on social media about their entitlements.
Shop, Distributive and Allied Employer Union national secretary Joe De Bruyn said he had no idea why employees had been gagged from speaking to the media.
"There is a freedom in this country," Mr De Bruyn said.
"You can't bind people to not speak to the media about their entitlements.
"You cannot sign away your legal rights."
Mr De Bruyn said he was hopeful everyone would get their money.
"The staff who are leaving would be entitled to any accrued annual leave, long service leave and of course they would be entitled to redundancy money," Mr De Bruyn said.
At a meeting on March 3, creditors were told REDgroup owed at least $118 million, with unsecured creditors owing $44 million.
REDgroup had just $1 million in the bank but employee entitlements totalled $7.8 million.
Administrator John Melluish said the employees had shown extraordinary commitment to keep the business alive.
"Unfortunately, the reasons for the store closures are beyond their control," Mr Melluish said.
Ferrier Hodgson spokesperson Michael Cave said it was too early to tell whether buyers would be found for the Angus & Robertson stores.
"Angus & Robertson are unchanged at this point," Mr Cave said.
When Ferrier Hodgson began administration in February, REDgroup had 116 stores and 2327 employees.
Borders administrators Ferrier Hodgson announced on Thursday it could not find a buyer for the last nine stores and would close them over the next six to eight weeks at a cost of 315 jobs.
A total of 1363 jobs will have been lost from the closure of Borders' 64 stores since owner REDgroup called in the administrators in February.
Ferrier Hodgson said the future of the remaining 59 Angus & Robertson stores, which are also owned by REDgroup, is yet to be decided.
The administrators have guaranteed payment of employee entitlements earned since they were appointed on February 17, but anything earned before then will depend on the liquidation of the stores' stock.
The Borders stores - four in Melbourne, two in Queensland and one each in Canberra, Sydney and Perth - are expected to close by July 17.
Borders staff have been barred from speaking to the media and on social media about their entitlements.
Shop, Distributive and Allied Employer Union national secretary Joe De Bruyn said he had no idea why employees had been gagged from speaking to the media.
"There is a freedom in this country," Mr De Bruyn said.
"You can't bind people to not speak to the media about their entitlements.
"You cannot sign away your legal rights."
Mr De Bruyn said he was hopeful everyone would get their money.
"The staff who are leaving would be entitled to any accrued annual leave, long service leave and of course they would be entitled to redundancy money," Mr De Bruyn said.
At a meeting on March 3, creditors were told REDgroup owed at least $118 million, with unsecured creditors owing $44 million.
REDgroup had just $1 million in the bank but employee entitlements totalled $7.8 million.
Administrator John Melluish said the employees had shown extraordinary commitment to keep the business alive.
"Unfortunately, the reasons for the store closures are beyond their control," Mr Melluish said.
Ferrier Hodgson spokesperson Michael Cave said it was too early to tell whether buyers would be found for the Angus & Robertson stores.
"Angus & Robertson are unchanged at this point," Mr Cave said.
When Ferrier Hodgson began administration in February, REDgroup had 116 stores and 2327 employees.
