(CHICAGO) Bookstore operator Borders Group Inc, which put itself up for sale in March, said yesterday that it has agreed to sell its 30 bookstores in Singapore, Australia and New Zealand to A&R Whitcoulis in a deal valued at up to US$110 million.

A&R, which operates 260 bookstores including Australia's Angus & Robertson, is owned by private equity firm Pacific Equity Partners.

As part of the deal, which is expected to close next week, A&R will have the right to use the Borders brand through a licensing pact.

'This transaction represents an attractive valuation, permits us to forgo further investment in these businesses, and provides our company with a significant cash infusion to further reduce debt, which is one of our key financial initiatives,' said Borders Group chief executive George Jones.

Earlier this week, Borders said it would cut roughly 20 per cent of its corporate workforce.

The cuts include 156 corporate positions at its Ann Arbor, Michigan, headquarters and 118 corporate positions at its distribution centres, field marketing organisation, and corporate sales division.

Borders, the No 2 US bookseller after Barnes & Noble Inc, has been working to cut operating expenses and reduce inventory to help offset falling sales.

Barnes & Noble has said that it is exploring a possible acquisition of Borders. Last month, Borders said that while it is reviewing alternatives, it has not engaged in 'substantive discussions regarding any specific transaction to date'. -- Reuters

This article was first published in The Business Times on Jun 6, 2008

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