US based private equity firm Paladin Capital is poised to gift itself with a purchase of Paperchase.
According to Sky News, Paladin is close to wrapping up a £150m acquisition of the stationary and gift card chain in a deal that would mark the latest high street retailer to change ownership.
The talks aren’t exclusive, but Paladin is the favoured party, according to sources close to the auction.
It is understood that Paladin is keen to buy the business so that it can expand its presence across America, where it recently launched online and also trades through 1400 Target stores and 1200 Staples outlets in the States.
The chain is currently owned by Primary Capital, which bought Paperchase in 2010 from collapsed bookstore chain Borders, in a £30m deal.
Paperchase has continued to be profitable despite consumers' changing shopping habits, recording sales of £28.4m in the five weeks to December 27.