Tesco buys Paperchase brand but over 800 jobs remain at risk
Tesco has purchased the brand and intellectual property of Paperchase, the supermarket has confirmed, after the embattled stationary company collapsed into administration this morning.
However, it has not acquired the chain’s 106 physical stores across the UK and Ireland, leaving 820 jobs at risk.
The supermarket will now sell its products in its UK stores.
“Paperchase is a well-loved brand by so many, and we’re proud to bring it to Tesco stores across the UK,” Jan Marchant, managing director of Home and Clothing at Tesco, said.
It comes as reports emerged that the chain store’s parent company was in the process of bringing in insolvency practitioners from Begbies Traynor.
Paperchase was bought out last August by retail investor Steve Curtis, having already been subject to a pre-pack administration in January 2021.
“The key challenge for Paperchase has been many store locations based around commuter hubs, which have had a low and then declining footfall since the pandemic,” Rebecca Crook, from digital consultancy CI&T, said.
She also pointed out the company’s failure to boost its online presence.
“Many online card companies, for example Moonpig, have improved their online offerings, tempting consumers to create their own bespoke cards. They have also used data successfully, such as reminding users of birthdays or anniversaries to prompt them to purchase again – something Paperchase has never leveraged,” Crook said.