Borders UK could be placed on the market as Clearwater Corporate Finance has been appointed to manage its sale.
The books retail business, which is supported by Luke Johnson, also owns the Books etc stores, and all 37 of its outlets would be disposed of in a sale. It is thought that the loss-making business could be sold for a nominal price.
RSM Bentley, appointed last month are still seeking the sale of some of Borders UK's struggling stores in out of town locations.
Mr Johnson's private equity firm Risk Capital Partners bought the bookseller business for £20m in 2007.
A potential complication to the sale of Borders UK is the presence of Paperchase concessions in many of the stores. Paperchase is owned by Borders, the former US parent of Borders UK. An unsuccessful attempt at selling Paperchase took place last year.
A spokesperson for Borders UK has been cited as saying that the business is ready to seek funding after some structural changes made in 2008.
When Risk Capital bought the business in 2007 it had over 70 stores including 28 Books etc outlets, it now has 37 stores and seven Books etc shops.
