After filing a notice to appoint administrators in early January, stationery chain Paperchase has been rescued. Backed by private equity firm Permira Debt Managers, newly incorporated company Aspen Phoenix NewCo will save roughly 1,000 jobs and 90 stores.
Paperchase Chief Executive Olly Raeburn welcomed the deal stating that it was “tough but necessary” if the firm was to survive. He pointed to the impact the November UK lockdown had on the company which came at a crucial time in Paperchase’s annual sales. 40% of the firm’s sales comes from trade in the final two months of the year.
The Chief Executive added, “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.”
It is expected that up to 250 jobs will be lost, whilst 37 stores will permanently close their doors.