// Tesco buys the Paperchase brand and IP after it collapsed this morning
// It has not taken any Paperchase stores but plans to bring its products into its supermarkets
Tesco has bought the Paperchase brand and related IP in a pre-pack administration deal.
The grocer plans to bring the brand to its stores. It is thought that Paperchase’s 106 UK stores will all close.
Paperchase collapsed into administration this morning, appointing Begbies Traynor to handle the process, after PwC’s attempts to secure a solvent sale were unsuccessful.
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The Begbies Traynor administrators 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.
“However, this sale reflects the interest in the well-known and established brand and will enable the brand to continue in Tesco stores across the UK.”
Begbies Traynor will continue to trade Paperchase’s operations in the short term with all stores remaining open. It will retain all employees in Paperchase stores whilst they trade but 75 head office staff have been made redundant today.
This is the second time in two years that Paperchase has been on the brink of administration with the first notice to appoint administrators having been made back in January 2021.
The retailer was rescued in a pre-pack deal led by a lender connected to private equity firm Permira in 2021 and was bought by retail entrepreneur Steve Curtis, backed by Retail Realisation, last August.
However, late last year a ‘For Sale’ sign was once again hoisted above the stationery retailer.
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