After Tesco decided to purchase the high street stationery chain’s brand but not its stores or employees, Paperchase’s 106 locations may close.
The Sale Were Declining
On Tuesday morning, the retailer engaged administrators after the faltering company was unable to arrange a rescue sale. Tesco has disclosed a deal to acquire the trademark and other intellectual property from the insolvency professionals.
However, the decision means that Paperchase’s stores are set to close, and hundreds of store employees are probably going to lose their jobs.
The managers of Begbies Traynor announced that they would keep the shops open for a short while and that staff members would continue to work throughout that time. They said nothing about what might happen to their careers.
The administrators said that they had laid off 75 employees at the London headquarters. It happened when retail industry experienced owner Steve Curtis put the failing company on the market but was unable to find a buyer.
Paperchase Is Now A Tesco Brand
Tesco will acquire the Paperchase name but not the physical location. According to the administrators, Aspen Phoenix Newco Limited, doing business as Paperchase, appointed Mark Fry, Kirstie Provan, and Gary Shankland of Begbies Traynor as joint administrators on January 31.
“Unfortunately, no acceptable proposals were received for the company, or its business and assets, on a going concern basis, despite a thorough sales process.
“However, the Paperchase brand and related intellectual property have drawn a lot of attention.
“In the short term, the joint administrators will continue the company’s business activities, with all stores remaining open and conducting business as usual.”
37 Shopes Were Closed
In the short term, the company stated it will still honour gift cards, but it emphasised that doing so will “not be viable” after two weeks. Two years ago, Paperchase also entered administration, forcing the closure of 37 outlets.
Tesco’s Jan Marchant, managing director of home and apparel, stated, “We’re thrilled to welcome Paperchase to Tesco stores across the UK. Paperchase is a well-loved brand by so many.
“This will assist us to forward our plans to bring new brands and inspiration to the categories we now provide,” the company said. In due time, we want to provide additional information to our clients.
FAQ’s
1. Who brought Paperchase store?
A. Tesco
2. How many branches of Paperchase is there?
A. 106
3. How many stores were closed ?
A. 37
4. What happened to Paperchase store?
A. The brand will be sold to Tesco
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