Today Borders Group announced that they will sell the stationary card, and gift company Paperchase Products to Primary Capital, an investment management company based in the UK.
When the sale closes next week, Borders will gain $31 million from the sale. However, the company will use $25 million to help repay part of a $90 million debt. The bookseller will continue to stock Paperchase products in U.S. stores. In June, the bookseller made heavy layoffs on the Paperchase team.
Borders Group president Mike Edwards had this statement: “The sale of our Paperchase business is another major step in strengthening our balance sheet — and enables us to place an even greater focus on our financial and strategic initiatives, which are vital to a Borders turnaround and revitalization of the brand … We look forward to continuing our strong relationship with the Paperchase team to provide our customers with the wide array of fashionable gift and stationery products they’ve come to expect from Borders.”