Watch: Tesco buys Paperchase brand but shops face closure
Tesco (TSCO.L) has bought the brand and intellectual property of Paperchase just hours after the stationery chain collapsed into administration after failing to secure a rescue deal, putting 820 jobs at risk.
The supermarket has not acquired the Paperchase's 106 shops in the UK and Ireland, leaving the future of 820 staff in doubt.
The chain said its shops would continue running in the “short term”, and all stores will remain open and trading as normal.
Tesco's managing director of home and clothing Jan Marchant said: "We have been building out plans to bring more brands and inspiration to the ranges we currently offer, and this will help us to take those plans further.
"We look forward to sharing more with our customers in due course."
The stationery retailer has appointed Begbies Traynor as its administrator after failing to secure any buyers for the business.
“On 21 January, Mark Fry, Kirstie Provan and Gary Shankland, of Begbies Traynor, were appointed as joint administrators of Aspen Phoenix Newco Limited, which trades as Paperchase," Begbies Traynor said in a statement.
“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, 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.”
Revealed: A deal for Tesco to buy the Paperchase brand is likely to be confirmed later following the high street stationery chain’s second skirmish with insolvency in under three years. As I understand it, the grocer won’t take on any Paperchase shops. https://t.co/zqHaGsgaTW
— Mark Kleinman (@MarkKleinmanSky) January 31, 2023
Earlier on Tuesday, Sky News reported that Tesco (TSCO.L) was considering buying Paperchase’s brand name and other intellectual property, but not its stores.
Paperchase, which was founded in 1968, went through a form of insolvency proceedings four years ago to cut stores and reduce costs.