Tesco (TSCO.L), Britain’s largest supermarket chain, announced on Tuesday that it has bought the Paperchase brand and related intellectual property after the stationery and gifts shop went into administration.
Tesco, on the other hand, will not be taking on Paperchase’s more than 100 stores in the United Kingdom and Ireland, putting about 820 jobs at danger.
After failing to achieve a rescue agreement, Paperchase entered administration, a measure of creditor protection.
“Unfortunately, after a thorough sales process, no credible proposals for the firm, or its business and assets, on a going concern basis were received,” joint administrators Begbies Traynor stated.
In the immediate term, they will continue to operate Paperchase’s business, with all stores remaining open and trading as usual.