HIGH street book chain Borders, which has a major store in Southampton’s West Quay Retail Park employing 50 people, is holding emergency rescue talks as it fights to secure its future, it has emerged.

The group, which also includes the Books Etc brand, is said to be in discussions with firms including Waterstone’s parent HMV as fears mount it could be forced to call in administrators this week.

It is understood WH Smith walked away from a takeover deal on Friday, dashing hopes that it would secure a sale of the bulk of its store portfolio to the retailer.

Daily Echo: Click below to see a video of today's headlines in sixty seconds

Borders – bought in July under a private- equity backed management buyout – was thought to have been looking to offload 36 of 45 stores to WH Smith. Borders is reportedly concerned it does not have enough cash to make it through the key Christmas trading season, having suffered increasing competition from super marke t s and online booksellers.

The group is also believed to have struggled amid the tough trade credit insurance markets, which has made it hard to secure stock from suppliers.

Borders was originally owned by the US book giant of the same name, but the UK and Ireland arm was sold to buyout group Risk Capital Partners – headed by Channel 4 chairman Luke Johnson – in 2007.

Management, led by chief executive Philip Downer and finance director Mark Little, then bought the group back with financing from Valco Capital earlier this year.

Borders’ last set of available financial figures reportedly show that pre-tax losses jumped from £10.3m to £13.6m, with doubts raised over its ability to continue as a going concern.

The group was not immediately available for comment.