Paperchase store in Whiteley faces closure as administrators called in and Tesco buys brand but not shops

The stationary business’s 106 branches face potential closure after Tesco agreed to purchase the high street brand, but not its stores or workforce. Paperchase has a branch in Whiteley Shopping Centre.

The retailer hired administrators last Tuesday after the struggling business was unable to secure a rescue sale. Tesco has announced a deal to buy the brand and intellectual property from the insolvency specialists.

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This move means Paperchase’s stores are expected to shut, with hundreds of shop workers likely to face redundancy. Administrators from Begbies Traynor said they would keep the shops open for a short time, and staff would stay in their jobs in the meantime.

They said nothing about what would happen to their jobs in the long term. The administrators said they had made 75 workers at the London head office redundant.

Owner Steve Curtis placed the ailing firm on the market after failing to secure a buyer. The 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.

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‘However, there has been significant interest in the Paperchase brand and attendant intellectual property. The joint administrators will continue trading the company’s operations in the short-term, with all stores remaining open and trading as normal.’

The company said last week it will honour gift cards in the short term, but would stop after two weeks. Paperchase also fell into administration two years ago, with the closure of 37 stores.