Borders UK has been bought out by its management team, with backing from Valco Capital Partners.
The management team is led by chief executive Philip Downer and finance director Mark Little.
Borders UK was owned by Risk Capital Partners, which had been seeking a new investor for some time.
The buyout is funded by Hilco’s private equity arm Valco Capital Partners, and follows the sale of five of the retailer’s stores – including its London flagship on Oxford Street – to fashion retailer New Look.
Downer said: “We are delighted that we have been able to secure the future for Borders in what are exceptional times for UK retailing and the global economy. The Borders management team looks forward to continuing to develop our innovative approach to bookselling, driving sustained growth and success in the future, and strengthening our unique position in the UK book market.”
Risk Capital boss Luke Johnson said: “I am very pleased that the management of Borders are taking the business forward with a new backer, and I hope they achieve lasting success.”
Risk Capital appointed Clearwater Corporate Finance to conduct a potential sale at the end of May. The bookseller had struggled in a declining books market, with huge volumes migrating online to shops such as Amazon.