Following a pre-pack administration deal finalised on January 28, 90-100 Paperchase stores are set to continue trading on the high street, saving 1,000 jobs. Twenty seven Paperchase stores are likely to close, at a predicted loss of 250 jobs.
A pre-pack deal allows for continuation of the business and protection of jobs while avoiding the need to liquidate the company.
In what has been billed as a ‘rescue deal’ by administrator PwC, the Paperchase brand and online operation were acquired by newly formed company, Aspen Phoenix NewCo, which is being backed by Permira Debt Managers, Paperchase funders since 2015. PwC will discuss unsettled payments with creditors.
Commenting on the new set-up, 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.
“In taking this action, we are giving ourselves the best opportunity to ensure that the business is fit for purpose in this new retail environment. We have been in close dialogue with all of our stakeholders through this process and are grateful for their continued support.
“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.”