Paperchase rescued - but 37 branches will close THE stationery and greetings cards chain Paperchase is to survive in a deal which will save 90 of its 127 stores. Administrators have said around 1,000 jobs will be saved by the sale of the business, but 37 branches will close permanently. Locally, Paperchase has a store at Ringwood’s Furlong and concessions in Bournemouth’s House of Fraser and at Next at Castlepoint. Staff are being consulted before the list of branch closures is revealed. The chain, which called in administrators from PwC earlier this month, will be taken over by newly formed company Aspen Phoenix Newco, which is backed by Permira Debt Managers.
Paperchase has secured a rescue deal which looks set to save 1,000 jobs across Britain, but up to 250 jobs are still at risk of being lost amid a raft of store closures.
Around thirty of the stationary retailer s 127 shops will remain shut for good as part of the deal, as the chain battles falling sales and footfall during the pandemic.
The company, which fell into the hands of administrators at PwC three weeks ago, said 90 of its stores were being sold to new owner Aspen Phoenix Newco, which is a newly formed company backed by private equity group Permira Debt Managers.
PAPERCHASE has secured a rescue deal which will preserve around 1,000 jobs and the majority of stores after tumbling into administration. But the card retailer said 37 of its 127 stores will still shut their doors permanently, despite the move. It is not yet known which stores will shut. The high street chain has a store in East Street, Brighton, as well as shops in Crawley, Lewes, Eastbourne, Shoreham and Chichester. Administrators revealed that newly formed company Aspen Phoenix Newco, which is backed by Permira Debt Managers, is to take control of the retailer. Paperchase hired administrators from PwC after it saw sales slide on the back of significantly lower footfall amid coronavirus restrictions.
Paperchase secures future of 90 high street stores - but 37 set to close
The deal rescued around 1,000 high street jobs
Paperchase has secured a deal to rescue the majority of its high street stores, saving 1,000 jobs, but 37 shops are set to close following the sale.
The stationery retail chain announced it appointed administrators this morning and was bought by Aspen Phoenix Newco.
Funds managed by Permira Debt Managers are the majority stakeholders in the company.
Paperchase chief executive Olly Raeburn said the impact of lockdowns and Covid restrictions meant it was “imperative” to make the “tough but necessary decision to safeguard Paperchase’s future”.
The Paperchase shop in Ringwood. THE stationery and greetings cards chain Paperchase is to be rescued in a deal which will save 90 of its 127 stores. Administrators have said around 1,000 jobs will be saved by the sale of the business, but 37 branches will close permanently. Staff are being consulted before the list of branch closures is revealed. In Hampshire, Paperchase has stores at Southampton’s Westquay Shopping Centre, Whiteley Shopping Centre, St George’s Street in Winchester and the Furlong in Ringwood. The chain, which called in administrators from PwC earlier this month, will be taken over by newly formed company Aspen Phoenix Newco, which is backed by Permira Debt Managers.