Tesco buys Paperchase brand leaving future of stores and workers uncertain

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Tesco has this morning snapped up stationery retailer Paperchase’s brand and intellectual property, casting a shadow over the future of its workers.

Tesco has acquired the name and intellectual property of the high street retailer, leaving the future of its stores and employees, of which there are around 800, in the balance.

Tesco managing director of home and clothing Jan Marchant said: “Paperchase is a well-loved brand by so many and we’re proud to bring it to Tesco stores across the UK.”

“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.”

A spokesperson for Paperchase’s joint administrators 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, 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.

”The joint administrators will continue trading the company’s operations in the short term with all stores remaining open and trading as normal. The joint administrators will continue to monitor trading in the stores and further updates will be provided in due course.”

The retailer said it would continue to honour gift cards for the next fortnight, and strongly urged customers to redeem them as soon as possible.

Paperchase, which operates around 100 stores, struggled during the pandemic and underwent a pre-pack administration in January 2021.

The retailer suffered massive losses during the 2020 festive season as its stores were forced to close during much of November and December when it would typically earn 40% of its annual sales.

In August last year, the chain was sold by Permira Credit to a consortium led by retail investor Steve Curtis, backed by Retail Realisation.

Curtis has previously chaired fashion retailer Jigsaw and led investments in chains such as Tie Rack, and beat competition including Hilco to strike a deal.

At the time of the purchase, Curtis was said to back management and embarked on a plan to expand Paperchase’s store estate to 150 shops.