Paperchase is still seeking a possible new buyer for the troubled high street brand - which recently relocated in Nottingham. There were reports earlier this month that the stationery company had lined up administrators less than six months after the last buyout.
The brand has been facing rising costs, poor sales and criticism for the alleged lack of payments to suppliers after the last buyout. Owners have put the business up for auction under the advisory firm, PricewaterhouseCoopers (PwC).
It confirmed that it had retained Begbies Traynor and PwC to advise on "strategic options" which may include the sale of the business to new owners. Talks are thought to be ongoing with a number of "interested parties".
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All stores are operating as normal during this time, including the Nottingham branch which is open for business. The shop recently moved from Middle Pavement to Clumber Street in August last year amid the last buyout.
Prior to that, Permira Debt Managers had rescued the brand from administration in January 2022. Paperchase was created in 1968 by two art students with its first store in London.
The brand has had many different owners since then, including the former bookshop Borders and WHSmith. It currently employs 820 staff with 100 outlets across the UK and Ireland.
Paperchase offers design-led cards, wrap, stationery and gifts, along with craft supplies. The retailer took over the empty Virgin Media store on Clumber street, situated next to the historic Lion Hotel building, which is now a casino, and the empty Chopstix noodle bar. It joined several other high-profile brands on the street including Lush, Tag Heuer and Superdrug.
It has been a difficult period for retail as sales have dipped amid an ongoing cost of living crisis, recession and rising operating bills. This follows two years of Covid restrictions which saw many shops forced to close and rely on online sales. Many are struggling to bounce back after the pandemic.
There were calls for a boycott of Paperchase products earlier this year after small suppliers complained that their invoices had not been paid following the January buyout. In a statement, Paperchase said: "We confirm that we have retained Begbies Traynor and PWC to advise Paperchase on strategic options, including the sale of the business as a going concern to new owners. Talks are continuing with a number of interested parties.
"All Paperchase stores and the website will continue to trade as normal during this period. We can’t comment further on this process until discussions with interested parties have been concluded."
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