Paperchase breaks from the Borders in £30m acquisition

The proposed acquisition, involving 65 high street stores and a further 35 outlets within other shops, has been backed by former Yo! Sushi owner Primary Capi-tal.

London-based Paperchase currently supplies products to Borders, which acquired a majority interest in the chain in 2004.

Primary director Graham Heddle said Paperchase had the potential for growth from the roll-out of more UK stores and the entry into new markets.

He added: "Primary focuses on a partnership approach with dynamic management teams and Paperchase's senior team has a proven track record of success in building the business."

Borders said the sale of Paperchase represented a major step in strengthening its balance sheet.

The group is separate to the Borders UK and Books Etc business which went into administration last year.

Mike Edwards, president of Borders Group, said his company would continue to use Paperchase for its gift and stationery products.