OXFORD bookseller Blackwell's has plunged deeper into the red and been bailed out by a multi-million pound loan from its major shareholder.

Latest figures for Blackwell Ltd, the book selling arm of the troubled family firm, reveal the company made a pre-tax loss of £10m in the year ended July 2, 2005 £3.4m higher than the £6.6m deficit made in 2004.

Since then Toby Blackwell, who owns the biggest stake in the company based in the city's Hythe Bridge Street, has lent it £8m in a bid to shore up its finances but claims it is money well spent after overseeing a major board room shake-up.

Mr Blackwell, pictured, 77, said: "I have put my money where my mouth is because I believe in the future of these bookshops. We now have the best young team of retailers.

"They will take a bit of time to sort out the business but already you can see the difference in the staff relationship with the publishers."

As part of the shake-up, Philip Blackwell son of Toby was ousted from his job as chairman and chief executive last February and replaced by chartered accountant Gerry Connolly who took on the role of executive chairman.

As part of the same "strategic review" the annual report reveals a further five directors and non-executive directors resigned last year.

Vince Gunn was appointed chief executive and Martyn Osborne finance director.

The report refers to 2005 as being a "difficult year" with the book services division affected by a weak US dollar which makes British products more expensive and teething troubles with a new computer system.

Mr Connolly said he expected the business to be on a better footing within the next 18 months with development of the Internet business and a focus on its library supplies arm supplying academic books to research libraries.

He added: "At the moment we are not playing to our strengths we need to be doing the simple things better." Four years ago, a family feud broke out when Toby Blackwell said sister company Blackwell Publishing should be sold to rival Taylor & Francis, based at Milton Park, for a reported £300m.

The sale was opposed by his nephew, Blackwell Publishing chairman Nigel Blackwell, and eventually did not take place.

Then, in 2004, it was proposed that the book shops should be sold after running up the £6.6m losses.

The plan was eventually rejected, with Philip Blackwell saying "bookselling is in our collective DNA".

Blackwell Ltd employs about 300 people and runs 62 book shops nationwide.

Blackwell Publishing, the Cowley-based publishing arm, continues under chairman Nigel Blackwell and chief executive Rene Olivieri.