Paperchase's 106 branches face potential closure after Tesco agreed to buy the high street stationery chain’s brand, but not its shops or workforce.
The retailer hired administrators on Tuesday morning after the struggling business was unable to secure a rescue sale.
Tesco has announced a deal to buy the brand and intellectual property from insolvency firm Begbies Traynor.
But the move means Paperchase's stores are expected to shut, with hundreds of shop workers likely to face redundancy. The company has 11 stores in Scotland.
Administrators said that they would keep the shops open for a short time, and that staff would stay in their jobs in the meantime, but no further information was given about what would happen to their jobs in the long term.
The administrators said that 75 workers has been made redundant at the London head office.
The move came after Paperchase was placed on the market by retail veteran owner Steve Curtis - but no buyer was forthcoming.
“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,“ read a statement from the administrator.
“Unfortunately, despite a comprehensive sales process, no viable offers were received for the company, or its business and assets, on a going concern basis.
“The joint administrators will continue trading the company’s operations in the short-term, with all stores remaining open and trading as normal.”
The company said it will continue to honour gift cards in the short-term, but stressed it will “not be possible” to redeem these after two weeks.
Paperchase also fell into administration two years ago, with the closure of 37 stores.
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 our 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.”
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