February 2, 2023 10.30 am This story is over 23 months old

Paperchase stores may close, despite Tesco buyout

The brand was bought, but not the stores

By Local Democracy Reporter

Supermarket giant Tesco has saved the brand of Paperchase from administration, but it’s understood it will not take on the physical stores, leaving more than 100 sites and 800 jobs at risk.

Stationery retailer Paperchase fell into administration in January after being put up for sale, just four months after the last change of ownership.

Rising costs and low footfall left Paperchase in a precarious situation, but a new buyer has now been found in the form of supermarket colossus Tesco.

The deal will see Tesco purchase the brand and intellectual property of Paperchase, but not the 106 physical stores across the UK.

This means that over 100 sites and 800 staff members, including those at Lincoln High Street, could be facing imminent closure and loss of jobs.

Tesco will sell Paperchase goods within its UK stores, while the items will also be available in train stations around the country.

The announcement comes on the same day that Tesco announced it would be axing all remaining food counters and risking 2,000 jobs with a new management structure.

As for Paperchase stores, they will remain open for now, according to the BBC, with customers given two weeks to redeem any gift cards.

It isn’t the first time we have seen Paperchase struggle with financial hardship, having arranged a pre-pack administration in January 2021 and cutting 500 jobs in the process.

Closing dates for the stores have not yet been revealed, but it would seem that this takeover spells the end of Paperchase’s time on the High Street.


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