Book retailer goes into administration putting hundreds of jobs at risk
A book retailer which employs just under 230 staff in North Wales has gone into administration just a week before Christmas.
The Book People, which employs 229 staff in Bangor in North Wales, has filed for administration. The company also employs nine staff at a distribution centre in Haydock.
PricewaterhouseCoopers (PwC) has been appointed as the administrator while the firm looks for a buyer.
The company was founded in 1988 in Surrey and in recent years has faced tough competition from Amazon and other online retailers.
The business will continue to trade and there are no immediate plans to make any of the 393 workers redundant.
The company sells books, gifts, toys and stationery online and through a catalogue at discounted prices.
It has an annual turnover of £50m and sells more than 17 million children’s books a year.
The Book People was acquired by Leeds based private equity group Endless in 2014.
James Woolley, partner at Endless, said they had “worked hard” to secure the firm’s future.
He added: “The well-documented challenges in the retail environment, compounded by the strength of global online booksellers, has severely impacted operating cash flows over recent years.”
Toby Underwood, joint administrator and restructuring partner for PwC, said: “I appreciate the obvious concerns that staff in particular will have as we move towards Christmas.
“Whilst the administrators have funding to meet the payroll for December, the longer-term prospects for the business, staff, customers and suppliers will clearly be dependent upon whether a sale can be secured.”
