Ann Arbor, Mich. - Media retail store chain Borders Group announced on Friday that it has sold its U.K. and Ireland subsidiaries to London-based private equity firm Risk Capital Partners, in a deal valued at up to $40 million.

Terms call for a $20 million up-front payment, plus another up to $20 million that is contingent on the future performance of the business; in addition Borders will receive a 17% equity stake in Risk Capital's new Bookshop Acquisitions subsidiary.

Borders operates 42 superstores, as well as 28 Books etc. stores in the U.K. and Ireland.

The company said it will incur a loss of $115 million associated with the sale, which it will record in the third quarter.

Related Links:
http://tinyurl.com/yughs2

http://www.borders.com