Rumours surround CNA in SA

Beleaguered South African retail chain CNA, which is on the market, has responded firmly to rumours that it is facing bankruptcy or a cheap sell-off. The South African market was abuzz this week with stories about the chain, which dominates the market for popular trade books in South Africa.

At one point there were fears the chain was about to go into liquidation and that redundancies had already begun. Richard Branson of Virgin was touted as a potential buyer, as was CNA's former parent company Gallo. But when The Bookseller spoke to chief executive officer David McAlpin on Wednesday he vigorously denied these rumours or any suggestion that a deal had already been signed.

But the chain confirmed that potential buyers were queueing up. An announcement is expected next week. One trade insider suggested that a deal would be struck, but for a "nominal amount", and that it would be contingent on changes at the chain, including shop closures.

CNA has been looking for a buyer since its holding company, Wooltru, decided to divest last year. The chain has been performing badly and reported substantial losses in the last financial year. Any sweeping cutbacks at CNA, which has a similar profile to W H Smith in the UK, would be a serious worry for publishers, including those in the UK who export to South Africa.