A CLOSING down sale has been launched at Hereford's Paperchase shop after the company was plunged into administration.

Paperchase’s 106 branches face potential closure after Tesco agreed to buy the high street stationery chain’s brand but not its shops or workforce.

The chain has a shop in Hereford's Old Market shopping centre, where signage has gone up announcing a closing down sale.

The retailer hired administrators on Tuesday morning after the struggling business was unable to secure a rescue sale.

Tesco has announced a deal to buy the brand and intellectual property from the insolvency specialists.

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

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Administrators from Begbies Traynor said that they would keep the shops open for a short time, and that staff would stay in their jobs in the meantime. They said nothing about what would happen to their jobs in the long term.

The administrators said that they had made 75 workers at the London head office redundant.

It came after the ailing firm failed to secure a buyer after being placed on the market by retail veteran owner Steve Curtis.

The administrators said: “On January 31, Mark Fry, Kirstie Provan and Gary Shankland, of Begbies Traynor, were appointed as joint administrators of Aspen Phoenix Newco Limited, which trades as Paperchase.

“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.”

The company said it will continue to honour gift cards in the short-term but stressed it will “not be possible” to redeem these after two weeks.

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 our 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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