Paperchase has secured a deal to rescue the majority of its high street stores, saving 1,000 jobs, but 37 shops are set to close following the sale.
The stationery retail chain announced it appointed administrators this morning and was bought by Aspen Phoenix Newco.
Funds managed by Permira Debt Managers are the majority stakeholders in the company.
Paperchase chief executive Olly Raeburn said the impact of lockdowns and Covid restrictions meant it was “imperative” to make the “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,” he said.
“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.”