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Published
Jan 31, 2023
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Tesco buys failed Paperchase brand, stores to close

Published
Jan 31, 2023

Supermarkets giant Tesco said on Tuesday it had purchased the Paperchase brand and its intellectual property following the gifts and stationery retailer going into administration.


Paperchase



But the news was bad as far as the chain’s 100+ UK and Irish stores were concerned as they’re not part of the deal. It becomes the latest in a series of brand takeovers by retail giants that have seen the purchaser acquiring the brand and IPR only and shutting the stores.

The move puts as many as 820 jobs at risk. Despite the stores not being included, they will remain open for now, however.

Paperchase had been hoping for a rescue deal but failed to secure one and consequently went into administration.

“Unfortunately, despite a comprehensive sales process, no viable offers were received for the company, or its business and assets, on a going concern basis,” joint administrators Begbies Traynor said of the situation.

Meanwhile, Jan Marchant, Tesco’s managing director of home and clothing, said that “Paperchase is a well-loved brand by so many, and we’re proud to bring it to Tesco stores across the UK”.

It’s unclear how Tesco will choose to market and display the still-well-regarded brand within its supermarkets and how big a product range it will offer in-store and online. The purchase price hasn’t been disclosed.

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