DOZENS of workers at Borders bookshop in York are waiting to find out if their jobs are safe, after it was revealed the company is fighting to secure its future.

The Davygate store, which employs between 40 and 50 staff, is one of 45 Borders shops nationwide facing uncertainty.

The company’s corporate finance adviser, Clearwater, last week put an advertisement in a financial newspaper offering the sale of “a chain of books and entertainment stores”.

According to national reports, the high street chain is reported 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.

Borders – bought in July under a private-equity backed management buy-out – 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 supermarkets 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 £10.3 million to £13.6 million, with doubts raised over its ability to continue as a going concern.

A spokesman for Borders declined to comment.