Borders Group says it will sell its Paperchase Products unit, a chain that sells stationery, cards and gifts based in the U.K., for $31 million, and use the proceeds to pay down its debt.
The new owner is Primary Capital Limited, a leading U.K.-based private equity firm. Borders will continue to carry products designed and sourced by Paperchase in its U.S. stores.
Borders, which
recently restructured its debt, will use $25 million of the proceeds to reduce the amount outstanding under its $90 million loan.--Sarah Mahoney