// Tesco is in advanced talks about buying Paperchase’s name and other intellectual property through a pre-pack administration
// The stationery retailer has been on the brink of collapsing amid reports that rescue talks had failed
Tesco is close to buying Paperchase in a pre-pack deal that will likely lead to mass store closures.
Britain’s biggest supermarket chain is in advanced talks about buying the stationery retailer‘s name and other intellectual property through a pre-pack administration that could take place as early as Tuesday, Sky News reports.
However, sources close to the situation said Tesco was unlikely to be interested in any of Paperchase’s stores.
There are currently 106 Paperchase stores in the UK and Ireland, employing 820 staff.
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It was unclear on Tuesday morning whether any other suitors were in talks about a deal.
Begbies Traynor has been lined up to handle the insolvency whilst PwC is working on selling the chain.
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 snapped up by retail entrepreneur Steve Curtis, backed by Retail Realisation, last August.
However, just four months later a ‘For Sale’ sign was once again hoisted above the stationery retailer.
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