Bracknell Paperchase store at the Lexicon at risk of closure

All 106 of its stationery stores across the UK are under threat, and as a result hundreds of workers now face uncertainty over their jobs.

The company has appointed administrators from Begbies Traynor to oversee the insolvency process.

It comes after Paperchase failed to secure a buyer after being placed on the market by retail veteran owner Steve Curtis.

The Lexicon Shopping Centre where the Paperchase store is located (Image: Newsquest)

The administrators said: “On January 31, Mark Fry, Kirstie Provan and Gary Shankland, of Begbies Traynor, were appointed as joint administrators of Aspen Phoenix Newco Limited, which trades as Paperchase.

“Unfortunately, despite a comprehensive sales process, no viable offers were received for the company, or its business and assets, on a going concern basis.

“However, there has been significant interest in the Paperchase brand and attendant intellectual property.

“The joint administrators will continue trading the company’s operations in the short term, with all stores remaining open and trading as normal.”

Paperchase launched a Company Voluntary Arrangement (CVA) restructuring in March 2022 in an attempt to turn around its fortunes but saw this heavily impacted by the pandemic.

A move into administration was considered earlier this month after poor sales in November and December.

Trading in those two months usually accounted for 40% of the company’s annual sales.

Online sales had been strong but this had not been enough to mitigate the overall impact of temporary closures.