Future of 106 Paperchase stores uncertain as retailer goes into administration and Tesco buys brand

The future of Paperchase's 106 high street stores remains uncertain after Tesco bought its brand and intellectual property Credit: PA

Paperchase’s 106 branches in the UK and Channel Islands could be set to close after Tesco agreed to buy the high street stationery chain’s brand but not its shops or workforce.

The retailer hired administrators on Tuesday morning 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.

But the move means Paperchase’s stores are expected to shut, with hundreds of shop workers likely to face redundancy.

Paperchase appointed administrators from Begbies Traynor to oversee the insolvency process.

Earlier today, the administrators said: "On 31 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.

"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."

Paperchase is "strongly urging" customers to redeem gift cards as soon as possible because they will only be accepted for the next few weeks.

All 106 stores are expected to remain open for the time being, although they weren't included in the sale to Tesco.

Supermarket chain Tesco has purchased the Paperchase brand and intellectual property for an undisclosed sum Credit: PA

Jan Marchant, managing director of home and clothing at Tesco, 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."

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