// 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.
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.
- 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.