Tesco acquires Paperchase brand and IP
Tesco has acquired Paperchase’s brand and intellectual property as part of a pre-pack administration deal.
The move follows news this week that the greeting card and stationery retailer was on the brink of collapsing into administration following increased costs and lacklustre sales.
However, the deal does not include any of Paperchase’s 106 stores. The retailer employs around 820 people and it is not yet clear how many jobs will be lost.
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.”
Last August, Paperchase was acquired by a group led by experienced retail investor Steve Curtis, who is also chairman of Jigsaw, but was subsequently put up for sale.
Paperchase appointed insolvency practitioners from Begbies Traynor yesterday.
In a statement, the firm said: “The joint administrators can confirm that the intellectual property and brand name owned by the company has been sold to Tesco Stores Limited.
“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, the sale reflects the interest in the well-known and established brand and will enable the brand to continue in Tesco stores across the UK.”
