Paperchase collapses into administration: High Street stationer could shutter 100 stores with more than 800 jobs at risk after failing to find a buyer
- Stationery chain Paperchase has fallen into administration, risking 820 jobs
- Supermarket giant Tesco has bought the brand, but not its 106 High Street shops
Paperchase has fallen into administration, putting the future of its 106 stores at risk.
In another blow to Britain’s ailing High Streets, the stationery giant which employs hundreds of workers has appointed administrators from Begbies Traynor to oversee the insolvency process.
The beleaguered chain had failed to secure a rescue buyer after being placed on the market by retail veteran owner Steve Curtis.
Tesco has announced a deal to buy the brand and intellectual property from the insolvency specialists – but the move means Paperchase’s stores are expected to shut, with hundreds of shop workers likely to face redundancy.
High street stationery chain Paperchase has fallen into administration, risking 820 jobs
The administrators said: ‘On January 31, Mark Fry, Kirstie Provan and Gary Shankland, of Begbies Traynor, were appointed as joint administrators of Aspen Phoenix Newco Limited, which trades as Paperchase.
‘Unfortunately, despite a comprehensive sales process, no viable offers were received for the company, or its business and assets, on a going concern basis.
‘However, there has been significant interest in the Paperchase brand and attendant intellectual property.
‘The joint administrators will continue trading the company’s operations in the short term, with all stores remaining open and trading as normal.’
Supermarket giant Tesco has bought the Paperchase brand and intellectual property after the stationery chain entered administration.
However, the supermarket chain’s deal for the business will not include any of the retailer’s 106 stores and is therefore expected to impact hundreds of jobs.
Jan Marchant, managing director of home and clothing at Tesco, said: ‘Paperchase is a well-loved brand by so many, and we’re proud to bring it to Tesco stores across the UK.
‘We have been building out plans to bring more brands and inspiration to the ranges we currently offer, and this will help us to take those plans further.
‘We look forward to sharing more with our customers in due course.’
Paperchase, which was founded in 1968, went through a form of insolvency proceedings four years ago to cut stores and reduce costs.
In January 2021 the company went into administration with PwC and was sold weeks later in a pre-pack deal, saving around 1,000 jobs when newly formed company Aspen Phoenix Newco took control of the firm.
But Paperchase was then sold again in August last year to a private investment firm led by the retail investor Steve Curtis.
Begbies said that it would continue to ‘monitor trading’ in Paperchase’s stores and provide further updates on the business’s future soon.
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