The Bookseller.com

19th November 2008

New developments at The Works

06.02.08 Graeme Neill

At least 42 businesses have expressed an interest in The Works, which went into administration last week.

The business is understood to owe around £20m but following negotiations with suppliers, administrator Kroll is running it as a going concern. "The vast majority of suppliers are cooperating with us," said Peter Saville, a partner at Kroll's corporate and advisory restructuring group. "They see there's the core of a good-quality business in there. We are discussing terms and payments with suppliers but it will continue to trade."

Investor Nick Croydon said he had expressed an interest in the chain to Kroll. Croydon is m.d. of discount wholesaler Columbia but told The Bookseller that any bid would be made independently of that business. "They have some very good sites," he said. "The opportunity is there to ditch the poor-performing stores and exploit the good ones."

Other names linked to a possible bid were The Works' former purchasing and marketing director Julian Tucki, m.d. of P R Books Paul Farrar and Caxton Publishing Group sales director Finbar McCabe. All were unavailable for comment.

The Works, which employs 1,600 staff across 317 stores, will continue to be run by administrators until a buyer is found. The company entered administration late on Thursday, blaming "challenging trade conditions and ever increasing competition within the retail industry".

Publishers mourned the news. "It's a black day. They were the only player left in this side of the trade and it is difficult," said Wordsworth Editions m.d. Helen Trayler. Retail analysts were gloomy about the chain's long term prospects. "I think the public has moved on from shopping in those stores," said Nick Bubb at Pali International. "They can get bestsellers on the high street or online for cheap."

Retail The Works Graeme Neill

Comments on this article