Another Retailer Close To The Border

With Woolworths and Zavvi already disappeared from High Street, the auditors of major music and book retailer Borders U.K. are said to doubt the group’s future viability.

Ernst & Young is reportedly concerned the company, which has filed annual losses up 36 percent from £9.9 million ($14.5 million) to £13.5 million ($22.5 million), is also in a highly competitive market where it’s difficult to predict future sales performance.

For the last full year ending Feb. 2, Borders U.K., which went through a management buyout last month, saw turnover up 1 percent from £215 million to £218.2 million.

The cash-flow situation is reportedly steadied by many of the chain’s outlets opting to paying rents on a monthly basis.

Ernst & Young’s note says these events and conditions indicate “the existence of material uncertainties which may cast doubt about the group’s ability to continue as a going concern.”