Borders UK switches sponsors

Luke Johnson's Risk Capital, which bought the book seller for £20m in 2007, has sold Borders UK to Hilco affiliate Valco Capital Partners.

Valco Capital Partners, the private equity unit of The Hilco Organization, has acquired bookstore chain Borders UK from Risk Capital Partners.

International law firm Salans said it provided Valco legal counsel for the transaction, speculation about which has been rampant in recent weeks. The financial details haven't been disclosed.

Risk Capital, a London-based private equity firm run by Channel 4 chairman Luke Johnson, bought the British booksellers in 2007 for £20 million. Borders has since struggled with competition from online retailers and recently sold five store leases to New Look, a UK clothing chain backed by Permira and Apax Partners.

Valco’s other portfolio investments include premium tableware manufacturers, Denby Pottery and Clipper Marine, a leisure boat company.

Risk Capital Partners most recently announced the close of its first institutional fund on £75 million in March.