Tesco has bought the Paperchase brand and intellectual property after the stationery chain entered administration. It is understood the deal does not include Paperchase's 106 stores, which are now at risk of closure putting hundreds of jobs at risk.
The high street stationary retailer appointed administrators from Begbies Traynor to watch over the insolvency process. Previously, Paperchase had failed to secure a buyer after being placed on the market by owner Steve Curtis.
Supermarket chain Tesco said it has made a deal for the business to bring it to its supermarkets across the UK, but the deal does not include any of the retailer’s 106 stores.
Read more: Police offer huge cash reward for help in finding missing Constance Marten and new-born baby
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 is just one among many that have struggled over the past few years due to rising costs and falling sales. While the shops will continue trading normally for the time being, an update is expected from the administrator in due course.
Earlier today, 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.”
Paperchase had previously fallen into administration two years ago which resulted in the closure of 37 stores.
Read next:
