Paperchase to keep majority of its shops open, safeguarding around 1000 jobs

Approximately 1,000 of its workforce will be safeguarded, according to Sky News which first tipped the deal earlier this week.

Paperchase employs around 1250 people.  It is not known how many jobs would be lost, but the fact most of the group is saved will be welcome in a tough week for retail.

Debenhams is planning to close all is shops, with 12000 jobs at risk, while Asos is in talks to buy Topshop, in a purchase that would not involve stores.

Many high street brands were grappling with a number of headwinds before the coronavirus outbreak, including high business rates and more competition from online rivals.

The retailer, which was previously majority owned by Primary Capital, in 2019 got approval for a Company Voluntary Arrangement, a model which allows firms to get new rent terms or exit certain sites.

Olly Raeburn, Paperchase’s chief executive, said: “The cumulative impact of lockdowns and related restrictions means that it is imperative we make this tough but necessary decision to safeguard Paperchase’s future.”

He 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.”

Paperchase’s new owner, Aspen Phoenix NewCo, is ultimately owned by Permira Debt Managers which has provided funding to the retailer since 2015.