The Bookseller.com

28th August 2008

Johnson explains Borders changes

31.01.08 Graeme Neill

Borders UK chairman Luke Johnson has described David Roche's resignation from the company as partly driven by a "need to minimise costs". Speaking to The Bookseller, Johnson said that Borders was a "different" business to the one Roche joined from Waterstone's in March 2006.

"When he joined it was in expansion mode-there was a bigger roll out of stores planned along the American model," he said. "But there's a different strategy now; it's a simplified business. We have taken a line of management out. We are managing the business for cash restructuring so we need to minimise costs at the centre and this is part of that. There's a more streamlined structure in place and a more appropriate model for the business as it is."

Roche's shock departure has seen retail director Philip Downer installed as c.e.o. It is Downer's second term at the helm of Borders. He previously headed up the business until Roche joined. In a statement, Downer thanked Roche for "his commitment and contribution".

"We have major plans for the year ahead, with a particular emphasis on the replacement of US systems, and the launch of our own online fulfillment website," added Downer. "At the same time, we will continue to develop our retail offer to ensure we are offering the best range, availability and service of any of the UK's bookstore chains.We have a terrific team at Borders UK, and we are all looking forward to working hard over the coming months in order to deliver our business objectives."

Johnson denied rumours of tensions between himself and senior management and said he believed Roche accepted that the job had changed: "I think he would be interested in a bigger job than the one on offer, which is maximising current assets rather than simply growth through new openings. He's a good guy and it's never nice to lose people but clearly 2008 is a challenging year for the retail trade. We need the right lower cost structure in place."

Roche was unavailable for comment but said in a statement that he wished "Philip and everyone at Borders all the best for the future". "Having helped provide controls and cement a unique market position over the last couple of years, culminating in seeing through a successful sale process, the time is now right for me to look for a new direction. I have a great passion for the world of publishing and all that it encompasses and hope that I can remain involved in some capacity," he said.

Retail Todays Picks Borders David Roche Graeme Neill Luke Johnson

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