// Paperchase rescued in pre-pack administration deal with Permira
// The deal will see the majority of the stores in Paperchase’s portfolio saved – approximately 90 out of 125
// 1000 jobs will also be saved, although it is unclear how many lose their jobs as a result of the store closures
Paperchase’s future on the high street has been secured after reports that it is about to be bought in a pre-pack administration deal.
According to Sky News and Retail Week, the stationery retailer will be sold to Permira Debt Managers as early as today.
The deal will reportedly see the majority of the stores in Paperchase’s portfolio saved – approximately 90 out of 125 – meaning 1000 jobs will also be saved.
READ MORE:
- Paperchase on the verge of appointing administrators
- Is stationery retail being erased from the high street?
- Creditors greenlight Paperchase’s CVA
An exact number of job losses as a result of the store closures is not yet clear, although at the start of the year reports suggested it had a total of around 1500 staff – meaning 500 could potentially be made redundant.
PwC is reportedly standing by as administrators-in-waiting for the pre-pack deal.
Earlier this month it was revealed that Paperchase was the brink of collapsing into administration after sales were hammered by lockdown and tiered restrictions in November and December – the period when trading usually accounts for 40 per cent of Paperchase’s annual sales.
Paperchase also launched a CVA restructuring last March in an attempt to turn around its fortunes but saw this heavily impacted by the Covid pandemic.
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