Borders sells UK and Ireland branches
Book retailer Borders today sold its UK and Ireland business to a private equity firm for up to £20m (€28.6m).
The deal includes all 42 Borders superstores and the 28 Books etc stores owned by the group. The stores employ about 2,000 staff.
The sale to Risk Capital Partners (RCP), which also owns fashion retailer East and the Giraffe restaurant chain, follows a review of international operations by the US-based books giant.
The Paperchase stationery chain, bought by Borders in 2004, is not included in the sale.
Borders entered the UK in 1998 with the acquisition of the Books etc chain but has recently seen a tougher retail climate and wants to concentrate on its US business.
The overseas arm – 70% of which is represented by the UK – made losses of $500,000 (€355,000) in the year to February 3, compared with profits of $11.9m (€8.4m) a year earlier.
Borders chief executive George Jones said: “This sale allows us to focus investment and resources on our core business, which is the US superstore segment.”
RCP will pay around £10m (14.3m) up front for the business and up to £10m more depending on its performance. It will also have the right to use the Borders and Books etc brand names under a licensing agreement.
But Borders will retain a 17% stake in the UK operation to gain a share of increasing momentum in the market.
RCP chairman Luke Johnson said: “We intend to build on the strength of the business and this well-respected brand as one of the UK’s largest book retailers.”
Borders, which is based in Michigan, has more than 1,200 stores and 32,000 staff worldwide. It also has 20 stores in Australia, four in New Zealand and franchise operations in Dubai and Malaysia.
