// Paperchase’s unsecured creditors have been left with a £20m bill from its first administration
// Tesco bought the Paperchase brand and IP after it collapsed last month
Paperchase’s unsecured creditors have been stuck with a £20 million bill from its first period in administration after the business failed for the second time.
The Times reports that unsecured creditors from the embattled stationary retailer’s previous insolvency have been notified that they will receive a dividend of 2.52% from the sale of assets that has been progressing since early 2021.
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Paperchase first collapsed into administration when its sales were hit by the pandemic and closed its stores for months during the first lockdown before taking another hit when the government imposed a second national lockdown in November 2020.
It meant that the company made a £1.1 million loss during the key Christmas trading period after making a £6.2 million profit during the period the year before.
Paperchase then collapsed once again at the start of this month and although it was snapped up by Tesco, its more than 100 stores will disappear from the high street.
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