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Paperchase: 37 stores axed & 500 job cuts as details of rescue deal revealed

// Paperchase’s rescue deal details confirmed: 1000 jobs saved but 37 stores to shut down
// Prior to its administration, Paperchase had 127 stores
// It is still not clear how many jobs will but cut as a result of store closures, although it could be as many as 500

Details of Paperchase’s rescue have been revealed after it secured a pre-pack deal to save 1000 jobs after it tumbled into administration.

It comes after Paperchase hired administrators from PwC earlier this month, after it saw sales slide on the back of significantly lower footfall amid coronavirus restrictions.

After speculation earlier this week, the stationery and greeting cards retailer today confirmed that 37 of its 127 stores would shut their doors permanently as part of the rescue deal.

READ MORE: 1000 jobs saved as Paperchase rescued in pre-pack deal

However, it is still not yet clear what the exact number of job losses will be from these store closures.

At the start of the year, reports suggested Paperchase had a total of around 1500 staff – meaning 500 could potentially be made redundant if 1000 jobs have been confirmed as saved.

Retail Gazette has contacted Paperchase and PwC for further details.

Nonetheless, the administrators confirmed that newly-formed company Aspen Phoenix Newco, which is backed by Permira Debt Managers, would take control of Paperchase.

The group said the rescue deal would retain its position in the UK retail landscape, “albeit in a smaller and more streamlined manner”.

Its new owners said that a “comprehensive transformation programme” was currently under way to help it rebound once restrictions lift.

“The cumulative impact of lockdowns and related restrictions means that it is imperative we make this tough but necessary decision to safeguard Paperchase’s future,” Paperchase chief executive Olly Raeburn said.

“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.

“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.”

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The post Paperchase: 37 stores axed & 500 job cuts as details of rescue deal revealed appeared first on Retail Gazette.



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