UPDATED: Tesco has bought the IP and brand rights of troubled stationery chain Paperchase after the retailer fell into administration, but not its 106 standalone stores.
Administrators at Begbies Traynor Group have been appointed to handle the process for Aspen Phoenix NewCo, the vehicle trading as Paperchase.
The retailer operates from 134 locations in total, including 28 concessions across Next, Selfridges and Arnotts stores.
The administrators said they were seeking to retain all staff employed in Paperchase stores while they continue to trade and in the operational functions that support the stores’ trading. However, 75 head office roles have been made redundant.
A statement from joint administrators Mark Fry, Kirstie Provan and Gary Shankland said: “Unfortunately, despite a comprehensive sales process, no viable offers were received for the company, or its business and assets, on a going concern basis.
“The joint administrators will continue trading the company’s operations in the short term, with all stores remaining open and trading as normal.
“The joint administrators will continue to monitor trading in the stores and further updates will be provided in due course.”
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 previously underwent a pre-pack administration process in 2021, when it was sold back to creditor Permira Debt Managers. At the time, the deal saved around 90 of its 125 stores.
In 2019, creditors voted in favour of a company voluntary arrangement that allowed it to close up to 28 stores, as well as switch to a turnover rent model for the majority of its sites.
To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews
