A thousand jobs have been saved in the deal but 37 of Paperchase’s 127 stores will shut their doors permanently.
Paperchase hired administrators from PwC after falling into administration last year as a result of tumbling sales amid the Covid-19 pandemic. PwC have now confirmed that Aspen Phoenix Newco, a newly formed company with backing from Permira Debt Managers, would take control of the stationery and gift brand.
Paperchase Chief Executive, Olly Raeburn, said: “The cumulative impact of lockdowns and related restrictions means that it is imperative we make this tough but necessary decision to safeguard Paperchase’s future.”
The new owners have said that a ‘comprehensive transformation programme’ is already underway that will see Paperchase continue to trade in the UK market albeit in a smaller and more streamlined way.
Raeburn concluded: “We, of course, recognise that this affects many of our colleagues and we will do all we can to assist them during this difficult time.”
