Looking for a price tag of about $80 million, borders (BGP) has put the UK Paperchase stationary retailer up for sale.
Paperchase has more than 100 stores and concessions, including ones in House of Fraser and Selfridges department stores in the UK. Recently, (2005) is has begun opening concessions in US Borders stores.
Reports are that Goldman Sachs (GS) has been hired to conduct a review that ought to lead to a sale.
I am not sure this is the best thing long term for Borders but, given the current retail environment, it is a necessary step to pay down some debt, restore more liquidity and let’s be honest, make it more attractive to a buyer.
Disclosure (“none” means no position):Long BGP
One reply on “Borders (BGP) to Sell Paperchase”
With the sale of the intl. business units, warrants to pershing squ. and paperchse the debt at borders is reduced by a little over 50%.