Card and stationery retailer Paperchase has collapsed into administration putting 820 jobs and 106 stores at risk.
However, in an eleventh-hour deal, Tesco has purchased the Paperchase brand and intellectual property - although the buyout doesn't include its stores.
The collapse of the stationary chain is still likely to result in hundreds of jobs being lost.
Paperchase stores will remain open and trading as normal for now with shoppers urged to spend their gift cards as soon as possible.
Customers have two weeks to spend their gift cards before they become worthless.
The stationery giant is yet another casualty of the declining UK high street with several chains having ceased trading over the last few years.
Paperchase appointed insolvency firm Begbies Traynor as administrators this morning.
A statement from Begbies Traynor said: "On January 31 2023 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, this sale reflects the interest in the well-known and established brand and will enable the brand to continue in Tesco stores across the UK."
Commenting on the announcement, Jan Marchant, managing director of home and clothing at Tesco, said: "Paperchase is a well-loved brand by so many, and we're proud to bring it to Tesco stores across the UK.
"We have been building out plans to bring more brands and inspiration to the ranges we currently offer, and this will help us to take those plans further. We look forward to sharing more with our customers in due course."
Paperchase, which specialises in gifts and stationery, was close to falling into administration in January 2021 but was rescued by Aspen Phoenix Newco, which was backed by Permira Debt Managers.
This last pre-pack administration deal saved around 1,000 jobs but around 270 jobs were lost as Paperchase had to permanently close 27 of its sites.
A pre-pack administration is a procedure that allows an insolvent company to sell its assets as soon as an administrator is appointed.
Paperchase changed hands again in August last year by the retail entrepreneur Steve Curtis, chair of the fashion chain Jigsaw, who was backed by Retail Realisation.
Full list of Paperchase stores
- Altrincham
- Arnotts
- Basingstoke
- Bath
- Battersea
- Belfast
- Berkhamsted
- Beverley
- Birmingham Grand Central
- Birmingham New St
- Birmingham Selfridges
- Bishopsgate
- Bishops Stortford
- Bluewater
- Bracknell
- Braehead
- Brighton
- Bristol
- Bromley
- Bury
- Bury St Edmunds
- Byres Road
- Cambridge
- Canterbury
- Cardiff St Davids
- Cheapside
- Chelmsford
- Cheshire Oaks
- Chester
- Chichester
- Chiswick
- Colchester
- Cribbs Causeway
- Derby
- Dundee
- Dundrum
- Durham
- Edinburgh
- Edinburgh Morningside
- Exeter
- Finchley Road
- Forestside
- Glasgow Buchanan
- Guernsey
- Guildford
- Harrogate
- Henley on Thames
- Hereford
- Hitchin
- Islington
- Jersey
- Kings Cross Station
- Kingston
- Lakeside
- Leamington Spa
- Leeds Commercial Street
- Leicester
- Lewes
- Lincoln
- London Bridge
- Maidstone
- Manchester
- Marble Arch
- Meadowhall
- Merry Hill
- Metro Centre
- Newbury
- Newcastle
- Next Aintree
- Next Birmingham Junction 9
- Next Bolton
- Next Bournemouth
- Next Camberley
- Next Crawley
- Next Enfield
- Next Gloucester
- Next Handforth Dean
- Next Hanley
- Next Ipswich
- Next Kirkcaldy
- Next London Colney
- Next Luton
- Next Maidstone
- Next Manchester Arndale
- Next Norwich
- Next Oxford Street
- Next Plymouth
- Next Selly Oak
- Next Shoreham
- Next Solihull
- Next Straiton
- Next Wolverhamptom
- Next York
- Northcote Road
- Nottingham
- Oxford
- Perth
- Peterborough
- Plymouth
- Putney
- Ringwood
- Rushdean Lakes
- Sailsbury
- Sevenoaks
- Sheffield
- Silverburn
- Solihull
- Southampton
- Staines
- St Albans
- St Andrews
- St Pancras Circle
- St Pancras Station
- Street Outlet
- Swindon
- Taunton
- Telford
- Trafford Centre Selfridges
- Tunbridge Wells
- Victoria Station
- Walton on Thames
- Wandsworth
- Wattington
- Waterloo Station
- Watford
- Whiteley Village
- White Rose Leeds
- Wimbledon
- Winchester
- Windsor
- Woking
- Worcester
- York
- York Outlet
