Ferrier Hodgson is now ‘‘urgently seeking offers from potential buyers of all or part of the Angus & Robertson or Borders networks,’’ according to a statement out today. Mr Melluish said offers for individual stores would be considered. “If we are unable to find a suitable buyer, the Angus & Robertson and Borders stores will be closed,” he said. Ferrier Hodgson said it would guarantee all employee entitlements accrued from the date of their appointment on February 17, 2011. ‘‘Payment of entitlements accrued prior to the administration is dependent on final stock realisation, which will be known within the next few weeks,’’ Ferrier Hodgson said in its public statement.

Time running out Ferrier Hodgson said there was no timeframe for the closure of stores, although sources within the company said they had been told it could be between one month and six weeks. Finding a buyer within a couple of months may be difficult with the overall retail industry stagnant as consumers hold off spending or increase their online shopping in their hunt for bargains. The book trade has been among the most affected by the rise of internet shopping, with comparable products often found more cheaply on overseas websites. After the most recent layoffs, including today's, the group will employ a total of 883 people, the statement said. When the company went into administration, REDgroup had 116 stores with 2327 staff in Australia and 90 stores with 1150 staff in New Zealand.

In April, Ferrier Hodgson announced 310 permanent and 200 casual staff cuts. Closure questions Separately in a list of frequently asked questions of employees for staff, obtained today by BusinessDay, administrators outlined the role of American restructuring consultants Hilco Merchant Resources role in the event of a wind-up of the stores. Hilco has assisted in the closure of US-based Borders outlets and the 17 Australian Borders already shuttered. The document said stores will have the same payroll budget that was previously approved.

‘‘Until advised otherwise, store management should continue to use their allocated budget,’’ the document obtained by BusinessDay shows. ‘‘However, the Hilco supervisor will be authorised to adjust payroll guidelines up and down to meet sales volume needs.’’ ‘‘The Administrators and Hilco will try to honour previously approved annual leave requests,’’ it says, although it’s unclear what incentive employees will receive for staying to their store's final closing day. ‘‘Once we have a firm idea of the exact closing day of your store, we will advise employees in relation to incentives that may be available to employees who meet certain criteria.’’ REDgroup’s sell off of Angus & Robertson and Borders assets came the same day Borders in the US filed for Chapter 11 bankruptcy protection. The US company, a separate legal entity, has shuttered 237 of 642 stores. Currently it's in talks with a potential buyer for a deal to keep more than half of its 405 remaining outlets open.

REDgroup's sell down Last week, REDgroup sold off 57 New Zealand-based Whitcoulls and five Borders stores to the operator of Farmers, the James Pascoe Group for an undisclosed sum, taking 900 more staff off the payroll of the bookseller.



REDgroup’s number of stores has dropped from 260 in Australia and New Zealand, to 61 Angus & Robertson stores and nine Borders locations, since being placed in administration.



Today’s developments mark the latest stage in the fall of what was once Australia’s largest book retailer, which struggled under $118 million in debt, slumping retail trade and surging competition from online sales.



At the time of being placed into administration by its owner Pacific Equity Partners, REDgroup Retail had $6.4 million in cash. czappone@fairfax.com.au Follow Chris Zappone on Twitter Follow BusinessDay on Twitter