There were further fears for the future of Borders tonight after the struggling book and music retailer closed its website to new orders and cancelled at least one upcoming author signing in Bristol.
So far, three book distributors have stopped supplying the high street retailer amid concerns that it might be on the brink of administration, though one publisher cautioned that temporary supply disruptions over late payment and other issues were not uncommon in the trade.
Borders, acquired in a management buyout backed by private equity group Valco as recently as July, lost £13.6m last year and has been trying to attract a white knight. It has held talks with WH Smith, but the discussions, described by one party as not especially meaningful, broke down at the end of last week. HMV, which owns Waterstone's and has also been in talks with Borders, is thought to only be interested in picking up a handful of its 45 stores in areas where there is no overlap.
At least two of the big four book firms – Dan Brown publisher Random House, and Hachette UK, publisher of the Twilight saga – have stopped trading with Borders, as well as the Independent Alliance, which represents publishers including Faber & Faber. Random House stopped supplying after an issue with a payment. Borders, though, could still get hold of their titles through wholesalers.
Visitors to the Borders website today found themselves unable to place orders. The company also owns the Books Etc chain, which it is in the process of closing.
Borders would not comment on any ongoing discussions. In a statement, the company said the website "is currently unable to process new orders for books while the business is in discussion with potential buyers. Existing customer orders are also being delayed but will be fulfilled."
Neill Denny, editor-in-chief of the Bookseller, said: "Borders' essential problem has always been trying to make a big box US retail format work here, where on average retail square footage costs about twice as much. They expanded fast in the late 1990s and the early part of this decade and may well have overpaid for leases.
"It may be that in a tightening book market, there just isn't room for three national chains, particularly when you consider the continuing growth of the supermarkets and the web."
BDO Stoy Hayward declined to comment on reports that it was poised to step in as administrator.
Borders chief executive, Philip Downer, led the acquisition of the chain from Channel 4 chairman Luke Johnson's Risk Capital Partners, who had bought it from its American parent in 2007. The US chain had launched in Britain in 1998.
According to the Booksellers' Association, online retailers, led by Amazon, are taking an increasing role in the market, more than doubling their share to 13.4% by 2008.