High Street stationer Paperchase ‘could collapse as soon as tomorrow as plans of selling the business have faded’
- Paperchase could be sold to a buyer which could see a loss of stores and jobs
- Insiders have said that insolvency practitioners could be appointed on Tuesday
- Shareholders are still in discussions to secure a pre-pack administration deal
Major high street stationer Paperchase could be at risk of collapsing as soon as tomorrow amid reports that the business is in talks to secure a pre-pack administration deal.
The retailer could be sold to a new buyer which could see a loss of stores and jobs as a result. The business has 106 branches and over 800 employees across the UK and Ireland.
Insiders have said that insolvency practitioners could be appointed on Tuesday after plans to sell the business faded.
It is believed that shareholders are still in discussions to secure a deal.
The retailer could be sold to a new buyer as soon as tomorrow which could see a loss of stores and jobs as a result
READ MORE: ‘Who can afford to shop in Paperchase anyway?’: Shoppers react as High Street stationer faces collapse
Paperchase has been experiencing losses for several years, which grew from £6.3million to £10million in the year to February 2019
The business called in administrators earlier this month in a race to find a rescue buyer just months after its latest change of ownership.
Steve Curtis, an experienced retail investor whose past ventures include high street names such as Tie Rack and Jigsaw, took over the embattled chain in August.
Prior to that, it was bought from American bookseller Borders in 2010 in a £20m management buyout backed by private equity firm Primary Capital. It was put on the market in 2015 but failed to receive any suitable offers.
Paperchase has been experiencing losses for several years, which grew from £6.3million to £10million in the year to February 2019, with turnover falling 5 per cent to £125million.
The potential sale of the business comes only four months after the retailer was bought by retail veteran Steve Curtis, who has previously backed Jigsaw and Tie Rack.
Paperchase also previously fell into administration two years ago, with the closure of 37 stores.
The firm once employed close to 1,300 people and had more than 125 sites across the country – with concessions at Selfridges, Next and House of Fraser – before slumping into insolvency during the pandemic.
A spokesperson for Paperchase told the Mirror: ‘The directors of Aspen Phoenix NewCo, which trades as Paperchase, confirm that following interest from a number of parties during the sale process, no decision has yet been taken on the future of the company.
Paperchase also previously fell into administration two years ago, with the closure of 37 stores
‘Paperchase stores and the website will continue to trade as normal during this period.
‘We can’t comment further until the process has concluded.’
All stores are currently still open and the Paperchase website is still running and accepting orders.
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