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Steve Curtis, an operating partner at Rcapital, the turnaround investor, has reportedly agreed to buy Paperchase as a private investor for an undisclosed sum, according to Sky News.
Its sources said on Thursday (25 August) that the deal was expected to be confirmed before the end of the week. Curtis, who has also chaired Jigsaw, is understood to have seen off competition from rivals including Hilco to buy Paperchase.
Retail Realisation, an industry advisory firm with which Curtis and Rcapital are affiliated with, is also believed to be involved in the deal.
Paperchase was put up for auction 18 months after Covid-19 affected its revenues and profits, having undergone a pre-pack administration in January 2021.
The selling shareholder is Permira Credit, which has controlled the chain since then. Its current physical retail estate comprises 96 standalone shops and 32 concessions. Curtis is said to back an existing management plan to grow that number to approximately 150 in the coming years.
Revenue is forecast to double between its 2021 and 2024 financial years, according to the source. It plans to grow the chain by 50% is a “bold bet on the potential” of the Paperchase brand and business model given the challenging economic backdrop.
Retail Sector has contacted Paperchase for a comment.
