Hachette UK Demanding Payment From Bankrupt Borders UK
Hachette UK is suing Borders UK for unpaid bills for books ordered. No one will say how much Hachette is owed, but the guess is that the amount is millions of pounds. Borders UK is going to close all its stores in the UK if a buyer isn't found by December 22nd. The Bookseller reports:
Hachette UK is appearing in the high court tomorrow [18th December] in a bid to stop Borders UK selling further books and to obtain payment for stock that has already been sold.
Peter Roche, deputy chief executive of Hachette, said the court hearing "represents [MCR's] last stand--if they lose here they might have to pay up to everyone else as well". Other publishers could "follow us" in pursuing legal action, "depending on the size of their debts", he said.
The final decision on legal action was taken yesterday (16th) after the retailer's administrator MCR failed to respond to a formal letter sent by the publisher last week, seeking to establish Retention of Title (ROT) claims.
Roche has previously described MCR as being "extremely obstructive" over ROT claims, despite having told publishers it had "sufficient funds" to settle.
If a buyer isn't found in the next six days 1,150 Borders employees will lose their jobs on Christmas Eve.