Retailer Paperchase has been sold in a pre-pack deal that will save around 1,000 jobs, administrators have confirmed.
Zelf Hussain, Rob Lewis and Rachael Wilkinson of PwC have been appointed as administrators to Paperchase Products Limited, securing an immediate sale to Aspen Phoenix NewCo, a deal the trio said minimises disruption to the business, and provides continuity for customers and all other parties.
In a statement, PwC said the transaction includes the sale of a “substantial part of the business, stores and assets to a newly incorporated company, preserving jobs, securing a sustainable outcome for customers, suppliers and other key stakeholders, albeit with a smaller, streamlined retail footprint”.
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However, jobs are set to go as the administrators said they will also have to close some stores.
The rescue deal will preserve around 1,000 jobs and the majority of stores, but PwC said 37 of its 127 stores will shut their doors permanently despite the move.
The company employed 1,278 staff across its store portfolio, head office function and its distribution centre.
The company operates as a retailer of greeting cards, wrap, gifts and stationery from sites across the 海角视频 and also operates concessions in a number of department stores including House of Fraser, Selfridges, and Fenwick, and through various Next stores.
Together with its store portfolio, it also has an ecommerce business.
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It emerged at the start of the year that Paperchase was on the brink of collapsing into administration after sales were severely impacted by lockdown and restrictions imposed in November and December, when trading usually accounts for 40% of its annual sales.
Paperchase also launched a CVA restructuring last March in a bid to turn its fortunes around.
Zelf Hussain, joint administrator and restructuring partner at PwC, said: “This sale has preserved jobs, customer relationships and maintained a trading partner for suppliers despite one of the most challenging economic climates for many years.
“For retailers with a solid strategy there is a genuine chance to work out a viable solution for longer-term recovery where an online focus can co-exist with a significant high street presence.
“Our primary role will be to maintain the store estate and support all staff during the transition period.”