Tesco has acquired the brand and intellectual property of struggling stationery chain, Paperchase.
However, the retailer has not acquired the 106 shops located in the UK and Ireland, leaving the future of the 820 employees uncertain.
Tesco will sell Paperchase’s products in its stores throughout the UK. The stationery chain has been struggling in recent years due to rising costs and declining sales, including decreased footfall in their train station stores due to remote work.
Paperchase’s stores will remain open for now, according to administrators Begbies Traynor, who will provide an update at a later time. A recent sale attempt by Paperchase failed to yield any viable offers, leading to the appointment of administrators.
The company was bought out of administration during the pandemic in 2021, but was sold again in August 2022 to a private investment firm led by Steve Curtis.
Meanwhile, Tesco announced it would be cutting 2,000 positions across its business, including 1,750 team manager positions and additional job cuts in pharmacies, post offices, and back office roles. However, the grocer plans to offer alternative positions to those affected by the closures of its counters and hot delis.
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