BORDERS, the UK's third-biggest high street bookseller, has lost its commercial director, the second high profile departure for the company in as many months.
David Kohn, who was bought in from W H Smith at the end of 2006 and had responsibilities for buying and marketing, will leave the firm at the end of April. The news comes just weeks after the departure of former chief executive David Roche.
Bord
ers was bought by Luke Johnson, the Channel 4 chairman, last September in a deal worth £20m. The entrepreneur, who made his name floating PizzaExpress in 1993, acquired the business through Risk Capital Partners (RCP), his private equity vehicle, for £10m with an additional £10m payable depending on performance.
At the time Johnson said up to half a dozen underperforming stores would probably be closed, as he looked to turn the company around.
The 70 stores, which are spread across the UK and Ireland and have 2,000 employees, were put up for sale last March through Merrill Lynch after Borders, America's second-biggest book retailer, launched a review of its international operations.
Philip Downer, the chief executive, said: "David was an important member of the management team that saw the business through its sale to Risk Capital Partners. As leader of the commercial team he has been instrumental in helping the business to achieve positive like-for-like sales and a significant improvement in stock turn. We wish him the best of luck for the future."
Borders entered Britain a decade ago when it paid an estimated £40m for London's Books etc chain. It is understood to have spent a total of about £120m here, opening 41 Borders-branded superstores, all of which have Starbucks coffee shops and Paperchase stationery concessions.
Meanwhile Borders US, which still owns a 17% stake in the UK firm, has appointed JP Morgan and Merrill Lynch to find a buyer or strategic investor.
The business, shares in which have plummeted in the last year, has suspended its quarterly dividend, and will take a short-term $42.5m (£21.4m) loan from hedge fund Pershing Square.
Borders US chief executive George Jones said the retailer had explored various funding options to expand the business but that "the current credit environment has made many of these prohibitively expensive or entirely unavailable".
Booksellers, like many other retailers, have come under pressure as rising petrol and food prices take more of consumers' income. Earlier last week Borders US said it was mulling possible options including a sale of some or all of its businesses.
The full article contains 436 words and appears in Scotland On Sunday newspaper.
