Upmarket stationery and greetings cards retailer Paperchase is to ramp up its expansion plans under its new owners, Primary Capital.

The private equity firm backed a management buyout of the business from embattled US bookseller Borders Inc for £30m this week, following discussions that have been in progress since April.

Chief executive Timothy Melgund said the change of ownership of the company marked the start of a “new chapter” for Paperchase.

Primary Capital director Graham Heddle, who joins the board of Paperchase as a non-executive, said: “Paperchase will expand more quickly than under Borders’ ownership, when there were financial constraints. Private equity ownership frees up management to focus on running a business.”

He added: “The US is a huge opportunity but there’s a lot to go for in the UK, too.”

Melgund, who has previously said there is scope for up to 200 stores in the UK, said the retailer is also frequently approached by retailers from countries across Europe, as well as Australia, New Zealand, India and China.

Paperchase already has stores in the Middle East and has further concessions in the US, Ireland and the Netherlands.

The retailer was put up for sale in 2008 by owner Borders Inc, but sources close to the situation said the original £50m price tag was deemed excessive.

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