Paperchase stationery shops face closure after Tesco buys brand

Hundreds of shop workers are likely to face redundancy.

Scotland’s Paperchase shops at threat of closure as Tesco takes over brand, but not shops or staff iStock

More than 100 Paperchase stores across the UK face closure after Tesco agreed to buy the brand.

The deal doesn’t include the high-street stationery chain’s shops or workforce.

The struggling went into administration on Tuesday morning after failing to land a rescue sale.

Within hours, Tesco announced a deal to buy the brand and intellectual property from, but will not purchase its shops.

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

Scottish branches that could be affected include Braehead, Dundee, Edinburgh, Edinburgh Morningside, Glasgow Buchanan, Byres Road, Next Kirkcaldy, Next Straiton, Perth, Silverburn and St Andrews.

Paperchase appointed administrators from Begbies Traynor to oversee the insolvency process, which began after the ailing firm failed 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.

“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.”

Paperchase also fell into administration two years ago, with the closure of 37 stores.

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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