There had been rumours the book retailer was set to make the announcement this week after it failed to find a buyer to secure its future.
A statement released by the insolvency firm MCR on Thursday confirmed the company, which owns some 45 Borders and Books Etc stores across Britain, had gone into administration.
The announcement places doubts over the security of over 1,150 jobs.
MCR said the business would continue to trade while a buyer was sought for all or some of the company's stores.
A statement from the insolvency firm states: 'The administration follows the continuing pressure on the retailer from increased internet competition, which has accelerated over the last year with sales levels falling further behind prior year levels.
'As a result the company has suffered from severe cash flow pressure and several of the company's suppliers have placed the business on stop or reduced credit limits. A number of credit insurers have also reduced cover to the company.'
Joint administrator Phil Duffy confirmed all stores would remain open for business as normal while a review of the company's affairs was completed and a buyer was sought, adding there had already been some interest.
'All outstanding employee wages have been paid up to date and ongoing wages for retained staff will continue to be paid as an expense of the administration,' he said.
'The appointment of MCR as administrators to the business is indicative of the weakening position of book retailers in the current market with competition on bestsellers from supermarkets and the growing strength of the digital and on-line markets in this sector.'
The firm's website has stopped taking new orders earlier this week following reports WHSmith had walked away from a takeover deal last Friday.
The chain was sold to the private equity firm Valco earlier this year.
A statement released by the insolvency firm MCR on Thursday confirmed the company, which owns some 45 Borders and Books Etc stores across Britain, had gone into administration.
The announcement places doubts over the security of over 1,150 jobs.
MCR said the business would continue to trade while a buyer was sought for all or some of the company's stores.
A statement from the insolvency firm states: 'The administration follows the continuing pressure on the retailer from increased internet competition, which has accelerated over the last year with sales levels falling further behind prior year levels.
'As a result the company has suffered from severe cash flow pressure and several of the company's suppliers have placed the business on stop or reduced credit limits. A number of credit insurers have also reduced cover to the company.'
Joint administrator Phil Duffy confirmed all stores would remain open for business as normal while a review of the company's affairs was completed and a buyer was sought, adding there had already been some interest.
'All outstanding employee wages have been paid up to date and ongoing wages for retained staff will continue to be paid as an expense of the administration,' he said.
'The appointment of MCR as administrators to the business is indicative of the weakening position of book retailers in the current market with competition on bestsellers from supermarkets and the growing strength of the digital and on-line markets in this sector.'
The firm's website has stopped taking new orders earlier this week following reports WHSmith had walked away from a takeover deal last Friday.
The chain was sold to the private equity firm Valco earlier this year.
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