PETALING JAYA: Borders Malaysia’s operations will not be affected by US-based Borders Group Inc’s filing for bankruptcy.
Berjaya Books Sdn Bhd, which operates the Borders chain in Malaysia, said in a statement that Borders Malaysia was an independent entity. “Borders Group Inc does not have any shareholdings in Borders Malaysia. Borders Malaysia is owned and operated by Berjaya Books, a wholly-owned subsidiary of Berjaya Corp Bhd,” it said.
It said all business strategy and day-to-day operations of Borders Malaysia were planned and managed by the Borders Malaysia team.
“Borders Malaysia does not rely on Borders Group Inc and has its own arrangements in place with distributors worldwide for books and products supply,” Berjaya Books said. Borders Malaysia chief operating officer Yau Su Peng said Borders Malaysia’s only tie to Borders Group Inc is via a franchise agreement that allowed Berjaya Books to use the Borders brand in Malaysia.
“It is business as usual in all of our stores, as Borders Malaysia is not a party to the Chapter 11 filing in New York. This is not a new situation for global brand franchise holders.
“Over the years, we have seen a few big global brands with international franchisees go through similar situations in the worldwide arena and yet not be affected within the local market in which their businesses operate,” she said.
Borders Malaysia operates six stores - five in the Klang Valley and one in Penang,