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Originally Posted by iandix
going into administration does not mean they are closing down. (it still might) what will more than likely happen is they will close some stores and break up the company and sell it off. So we may still have book stores and who knows we might still have the ebook business going, just with new owners. Kobo is still going and still growing.
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In Australia administrators are usually appointed by the banks who have lent money to the business. You are right that it might not mean that the stores will all close BUT no prizes for guessing who gets any money when assets are sold or outlets taken over by others. Only employees have any priority (along with the lenders), but as too often happens those poor sods are lucky to get any back pay and superannuation or other entitlements. If you are owed money then you are an unsecured creditor and would probably have little hope of getting any money back. (Hint-a lottery ticket may have better odds.) A working life in the insolvency business did make me very cynical - and oddly I saw very few well-run and well managed businesses go under. If I did it was usually because of some totally unexpected factor like a natural disaster or a fire.