Paperchase appoints administrators and sells part of business

Paperchase has announced the appointment of PwC and the completion of the sale of a substantial part of its business and assets to a newly incorporated company, Aspen Phoenix NewCo.

The sale of the business completed today (Jan. 28), following the appointment of administrators. Paperchase has been trading under a Notice of Intention to appoint administrators since Jan. 5, 2021.

The administration aims to minimize disruption to the business and provide continuity for customers and all other parties, according to the announcement. In taking this action, the management team has secured Paperchase's continued presence in the U.K. retail landscape, albeit in a smaller and more streamlined manner. The deal is expected to see up to 90 of the chain's 127 stores retained by the new owner, with roughly 1,000 of its workforce also safeguarded.

Paperchase will remain an omnichannel business, albeit with a smaller retail footprint, adds the announcement, while there will be a complete overhaul of systems, technical infrastructure and processes as part of the transformation.