High Street papermaker Paperchase ‘could collapse as soon as tomorrow as plans to sell the business have fizzled out’
- Paperchase could be sold to a buyer who could see a loss of stores and jobs
- Insiders said insolvency practitioners could be appointed on Tuesday
- Shareholders are still in talks to secure a pre-pack administration deal
Major papermaker Paperchase could be in danger of collapsing as early as tomorrow amid reports that the company is in talks to secure a pre-pack administration deal.
The retailer could be sold to a new buyer who could see a loss of stores and jobs as a result. The company has 106 branches and over 800 employees in the UK and Ireland.
Insiders said insolvency practitioners could be appointed on Tuesday after plans to sell the business disappeared.
Shareholders are believed to be still in talks to strike a deal.
The retailer could be sold to a new buyer as early as tomorrow, potentially leading to a loss of stores and jobs.
The company brought in administrators earlier this month in a race to find a salvage buyer just months after its last change in ownership.
Steve Curtis, an experienced retail investor whose past ventures include big names such as Tie Rack and Jigsaw, took over the beleaguered chain in August.
Previously, it was bought from US bookseller Borders in 2010 in a £20m management buyout backed by private equity firm Primary Capital. It was released in 2015 but received no suitable offers.
Paperchase has been posting losses for several years, which fell from £6.3m to £10m in the year to February 2019, with turnover down 5% to 125 million pounds.
The potential sale of the business comes just four months after the retailer was bought by veteran retailer Steve Curtis, who once backed Jigsaw and Tie Rack.
Paperchase also fell into administration two years ago, with 37 stores closing.
The company once employed nearly 1,300 people and had more than 125 locations across the country – with concessions in Selfridges, Next and House of Fraser – before slipping into insolvency during the pandemic.
A Paperchase spokesperson told the Mirror: “The directors of Aspen Phoenix NewCo, which operates as Paperchase, can confirm that following interest from a number of parties during the sale process, no no decision has yet been made on the future of the company.
Paperchase also fell into administration two years ago, with 37 stores closing.
“Paperchase stores and the website will continue to operate as normal during this time.
“We cannot comment further until the process is complete.”
All stores are currently still open and the Paperchase website is still running and accepting orders.
