Stores likely to close at collapsed Paperchase despite Tesco purchase

Paperchase’s stores are likely to close after Tesco purchased the retailer’s brand and intellectual property, hours after the it fell into administration.

The retailer’s high street stores were not purchased and as a result all members of staff at Paperchase’s 100 stores are likely to lose their jobs.

Paperchase called in administrators after its chances of a rescue deal looked increasingly unlikely.

Earlier this month it was reported that the stationery and greeting card retailer had contacted Begbies Traynor as potential administrators as it began to look for new buyers.

This came after it was revealed that Paperchase had been put up for sale only four months after its last change of ownership, when retail investor Steve Curtis snapped up the chain.

The retailer’s shareholders were reportedly in discussions with multiple potential buyers, however the sale of the business was likely to involve a pre-pack deal, in which the company’s assets are sold off as soon as it falls into administration, Sky News said.

This comes after PriceWaterhouseCooper was called in to help auction the retailer, which was one of many businesses that suffered heavily during the Pandemic.

Paperchase previously underwent a pre-pack administration in January 2021.