Jobs at risk in Hereford as Paperchase collapses into administration

Stationery retailer Paperchase has appointed Begbies Traynor as its administrator after failing to secure any buyers for the business.

The company has a shop in Hereford's Old Market development.

Begbies Traynor said in a statement this morning (January 31): “On January 21, Mark Fry, Kirstie Provan and Gary Shankland, of Begbies Traynor, were appointed as joint administrators of Aspen Phoenix Newco Limited, which trades as Paperchase.

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“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 said it would “strongly urge” customers to redeem gift cards as soon as possible because they will not be accepted after two weeks.

Begbies Traynor, which was appointed administrator of the stationery retailer on Tuesday, said that it would continue to monitor trading in stores and provide further updates in “due course”.

But all 106 stores will remain open for the time being, the firm said.

Tesco has bought the Paperchase brand and intellectual property after the stationery chain entered administration.

However, the supermarket chain’s deal for the business will not include any of the retailer’s 106 stores and is therefore expected to impact hundreds of jobs.

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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