The Bookseller.com

14th October 2008

Borders closes distribution centre

07.03.08 Graeme Neill

Borders UK will close its Cornwall distribution centre in August following a review of its supply chain. The retailer said that its interests would "be best served by having publishers and wholesalers deliver direct to stores”.

Borders will launch a period of consultation for the distribution centre's 91 staff on 10th March. The centre will close on 29th August, with Borders to transition to the new method of supply gradually from April through to the end of August.

Borders said the move would help moderate its supply chain costs, improve stock range and visibility, delivery times and efficiency and environmental impact.

Last week, Borders took out a £23m loan that is secured against the book inventory in its stores and distribution centre.

"We are making the announcement today in order to give the staff as much time as possible to plan their futures," said Borders UK c.e.o. Philip Downer. "I would like to thank all the team, particularly those people who have been with us while the business grew, for their hard work and commitment. We will be seeking to dispose of the building itself and I very much hope that alternative employment will be available at the site in the future."

Testing begins on Waterstone's new centralised distribution centre in Burton-upon-Trent on 31st May, which it says will reduce the complexity of the "administrative nightmare" of its current supply chain. Waterstone's believes it will reduce returns by 30% once the centre is fully operational.

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