Paperchase: UK administration and sale explained, will stores close, Begbies Traynor - has Tesco bought it?

High-street stationery chain Paperchase has filed for bankruptcy, endangering the survival of its 106 locations and hundreds of jobs.

Administrators from Begbies Traynor have been appointed by the corporation to manage the insolvency procedure after Paperchase failed to find a buyer after being put on the market by seasoned retail owner Steve Curtis.

While there has been a ray of hope after Tesco purchased the Paperchase name and associated intellectual property, the supermarket chain’s acquisition of the company does not include the retailer’s 106 stores; a negative impact will still be had on hundreds of employees.

Here is everything you need to know about it.

Why has Paperchase gone into administration?

Paperchase’s insolvency process was triggered after it failed to find a buyer after being put on the market by seasoned retail owner Steve Curtis.

“Unfortunately, despite a comprehensive sales process, no viable offers were received for the company, or its business and assets, on a going concern basis,” said administrators.

When will Paperchase stores close?

The stationery retailer’s administrator, Begbies Traynor, said it would keep an eye on in-store business in Paperchase’s stores, and provide more information on shop closures in "due course."

The company indicated that for the time being, all 106 outlets would remain open, but Paperchase has said it would “strongly urge” customers to redeem gift cards as soon as possible because they will not be accepted after two weeks.

What about Tesco’s acquisition?

Although Tesco’s acquisition of the Paperchase name and related intellectual property has provided some relief, the supermarket chain’s acquisition of the business does not include the retailer’s 106 shops. As such, Paperchase’s stores are still expected to shut, with hundreds of shop workers likely to face redundancy.

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.”