Paperchase has been bought in a £30m management buyout backed by private equity group Primary.

Management, including chief executive Timothy Melgund, bought the retailer from embattled bookseller Borders Inc in the US.

Primary said it was attracted to the stationery and greetings cards retailer by its “leading market position, the quality and range of its products and the significant opportunities to develop new markets”.

Primary’s Graham Heddle joins the Paperchase board as non-executive director.

Heddle said: “Primary is excited by Paperchase’s potential for growth from the roll out of new UK stores, further UK and international concessions and entry into new markets. 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.”

Primary also backs Tobar Group, which owns toy chain Hawkins Bazaar. It prevously backed the management buyout of The Works in 2003.

Paperchase has 65 UK stores as well as 35 concessions in retailers including House of Fraser, Selfridges, Harrods and more recently Waterstone’s.

The retailer was put up for sale in 2008 by owners Borders Inc, but sources close to the situation deemed the price tag excessive, and no deal was achieved.