UK - Valco to acquire Risk Capital-backed Borders UK

Valco intends to take on the Borders superstores, Books Etc, and Borders Express shops, which comprise 46 outlets in all. The deal is expected to save hundreds of jobs. Valco also plans to keep the existing management team, including chief executive Philip Downer.

Two other companies are said to be bidding for Borders as well, though their intentions with the company are unclear.

Borders has been struggling since Risk Capital acquired the business for £20m in 2007, as the market for bookshops has declined in the face of an increasing demand for online retailers. Borders has a debt pile of just under £10m and it has been reported that its primary lender, Landsbanki, is keen to close the transaction in the coming weeks. Risk Capital appointed Clearwater Corporate Finance to conduct a potential sale of Borders in May.

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• Topics
• Buyouts
• UK / Ireland
• Consumer