Staff and creditors of the collapsed REDgroup will know within days which of the company’s stores will close.

Steve Sherman of Ferrier Hodgson told creditors the company which owned Borders, Angus & Robertson, Whitcoulls and Supa News, had total cash of $6.4 million and secured debt of at least $118 million when it went into administration.

He told creditors that REDgroup's owner, Pacific Equity Partners, was considering shutting down some of the stores before the business went into administration.

Staff and creditors should know in the next 72 hours which stores would be closed.

The failed Borders business in Australia alone collapsed with only $1 million cash in the bank and group entitlements owed to staff of $7.8 million, the administrator told creditors this morning.