Paperchase has fallen into administration after failing to find a suitable buyer.

Begbies Traynor, which has been appointed as administrator, said that the intellectual property and brand name have been sold to Tesco.

Paperchase will continue to trade as normal in the short term with all stores remaining open.

It added that despite “significant interest in the Paperchase brand,” no viable offers had been received. However, Tesco’s purchase will enable the Paperchase brand to continue in Tesco stores.

Paperchase will continue to honour gift cards but recommends that customers redeem them as soon as possible as redemption may not be possible after two weeks.

The embattled retailer was put up for sale earlier this month - just months after being taken over by Steve Curtis, a retail investor who has been involved with Tie Rack and Jigsaw.

It is the second time Paperchase has fallen into administration. In 2019 the business went through a Company Voluntary Agreement (CVA) process, which cut rent costs by 50 per cent over three months for a number of its stores.

The company suffered during the pandemic lockdowns, blaming the cumulative effects of the lockdowns on its business.

Retail Systems has reached out to Paperchase for comment.

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