Whitcoulls and Borders sold to The James Pascoe Group

The Administrator of book retailer REDgroup Retail announced today that it has agreed to a sale of the Whitcoulls and Borders New Zealand businesses.

A sale of these businesses has been agreed with Project Mark Limited, a company in the James Pascoe Group.

The James Pascoe Group operates the brands Pascoes, Farmers, Stewart Dawsons, Goldmark, Stevens, Prouds and Angus & Coote. The sale price remains confidential.

The James Pascoe Group is a privately owned New Zealand retail business that employs over 9,000 employees in New Zealand and Australia.

The Administrator, Ferrier Hodgson partner Mr Steve Sherman, said the sale indicated that there remains a market for quality assets with widely recognised brands like Whitcoulls and Borders. 

Mr Sherman said the Voluntary Administration process had played a key role in saving the businesses by providing a stable environment to restructure the assets and provide the opportunity for a sale. 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.

“This is a very good result,” Mr Sherman said. “The sale guarantees the future of the majority of stores and has preserved more than 900 jobs. 

The James Pascoe Group is known for reviving businesses and has a strong record of investment in their stores, stock and people.”

The sale includes 57 Whitcoulls stores and five Borders stores. The purchaser will be approaching landlords shortly to discuss ongoing tenure and will also be engaging with employees over the next few days with regard to the terms of employment. 

It is hoped the sale will be completed by mid-June.

In April, the Administrator announced the sale of 10 Whitcoulls bookstores located in New Zealand airports and a separate sale of eight Bennetts stores at New Zealand universities.

Following the Whitcoulls and Borders sale, the Voluntary Administration process has facilitated the preservation of more than 1,050 jobs and provided business continuity in all of the business operations. 

Media release supplied by Ferrier Hodgson.

Read another version of this story on news website Stuff.co.nz.