Tesco has acquired Paperchase’s brand and intellectual property as part of a pre-pack administration deal.
The move follows news this week that the greeting card and stationery retailer was on the brink of collapsing into administration following increased costs and lacklustre sales.
However, the deal does not include any of Paperchase’s 106 stores. The retailer employs around 820 people and it is not yet clear how many jobs will be lost.
Last August, Paperchase was acquired by a group led by experienced retail investor Steve Curtis, who is also chairman of Jigsaw, but was subsequently put up for sale.
Paperchase appointed insolvency practitioners from Begbies Traynor yesterday.
