Paperchase unsecured creditors left with £20m bill
More than 100 of its stores will soon disappear from the high street following another collapse earlier this month
Paperchase’s unsecured creditors have been stuck with a £20m bill from its period in administration, according to The Times, after the company collapsed for the second time.
The stationary retailer’s creditors have been notified that they will be receiving dividends of 2.52% from the sale of assets that has been progressing since early 2021.
Although the retailer was bought by Tesco, The Times reports that more than 100 of its stores will soon disappear from the high street following another collapse earlier this month.
The retailer first went into administration when sales dwindled during the pandemic’s first lockdown closures. Paperchase then took another hit when the second national lockdown happened in November 2020.
During this period, the retailer lost £1.1m during the Christmas trading period after profiting £6.2m prior to the pandemic.
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 out 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.”
