Philip Downer: Borders boss is no quitter

No one could accuse Borders UK chief executive Philip Downer of being a quitter. When he was moved from the role of managing director to retail director in 2006, he did not angrily flee the bookseller as many others would have done, but bide his time before being reappointed to lead the business two years later.

While the reasons for his demotion and subsequent re-promotion are unclear, those who have worked with him say this stoicism shows Downer’s philosophical nature.

“Throughout that time Philip worked hard and did a good job,” says Cathy Ferrier, who worked alongside Downer as Borders commercial director between 2005 to 2006. “It’s classic Philip – sticking around and making it work. He played the long game.”

She describes the family man as a “hands-on retailer” with an “incredible ability” in operating bookshops. She adds: “He’s a very good leader. He’s genuine and listens to staff. He doesn’t sit in his office and pontificate.”

However, not everyone paints such a glowing picture after what has been an undeniably turbulent time at Borders. One former Borders senior executive questions Downer’s management style, in particular the handling of the future of the Books etc chain that Borders has been trying to offload for several years.

He says: “Four years ago Books etc was a very profitable company. But thanks to a complete lack of investment it became unprofitable. The chain was very highly regarded.”

He adds: “Downer is very well read – he is books through and through. But he is more bothered about the books themselves than the selling side.”

Downer is now top dog but, oddly enough, sources say he might only have had himself to blame for not being in control all along. As managing director he sent press clippings reporting on a bookselling awards ceremony to his then bosses at Borders US. Among the clippings was a report on David Roche – previously at rival Waterstone’s – winning an award. This clipping is thought to have brought Roche to the attention of the Americans and shortly after he was brought in to run Borders UK and Downer had to play second fiddle.

Roche, however, left in January 2008 – just months after Luke Johnson’s Risk Capital Partners bought the UK business – leaving the path open for Downer.

Such instability has not helped Borders though. The senior executive referred to Borders’ last 18 months as “a complete bugger’s muddle”.

That time has included a reduction in credit insurance, the uncertainty of being backed by failed Icelandic bank Landsbanki and closure of a number of stores. Borders has also been criticised for its late entrance into e-tail.

Downer, who has worked at Borders since the first UK stores opened in 1997, has also made a series of restructures at head office in the past year.

While restructures are not uncommon in a recession, the senior executive claims the sheer amount of change created an atmosphere of unease at the bookseller. “There has been constant uncertainty at Borders,” he says. “People were thinking: ‘When’s the next store closure? When’s the next restructure?’”

This period of instability culminated in Downer leading a management buyout of the business earlier this month, backed by Hilco’s investment arm Valco Capital Partners. Downer has grown his stake in the retailer, although he won’t reveal the new ownership structure.

Some observers have questioned whether there is any place in the UK for a books superstore, and Hilco’s involvement has not gone a long way to allaying those fears.

Downer, however, describes the buyout as merely moving Borders “onto the next chapter” and has said an administration is “not anybody’s intention”.

Having secured a deal that puts him in the driving seat, he has no intention of letting the story come to an end just yet.