Wed, 18 Jan 2023 | BUSINESS SALE
Stationary retailer Paperchase has engaged advisory firm PwC to market the business for sale, but has also lined up Begbies Traynor to explore future options which could include an administration. The announcement, which comes just six months after the company was acquired by a group led by Jigsaw chair Steve Curtis, comes following a turbulent few years for the firm.
The brick and mortar stationary business has come under increasing pressure over recent years, following the ascent of online card retailers such as Moonpig, a trend that accelerated during the COVID-19 pandemic, which saw physical retail stores closed for much of 2020. The firm’s current struggles come amid rising costs and continued slow sales across its outlets.
In a statement, a Paperchase spokesperson said: “We confirm that we have retained Begbies Traynor and PwC to advise Paperchase on strategic options, including the sale of the business as a going concern to new owners. Talks are continuing with a number of interested parties. All Paperchase stores and the website will continue to trade as normal during this period.”
Paperchase operates 106 UK stores, employing 820 staff, and says that a number of potential buyers are interested in acquiring its business. The company previously had more than 125 stores, prior to its acquisition by Permira Debt Managers in a pre-pack administration in January 2021.
Paperchase’s most recently available accounts at Companies House cover the year ending February 2 2019. In that period, the company reported turnover of £125.3 million, down from £131.1 million a year earlier, and saw its losses increase to £12.3 million, from £4.1 million a year earlier.
At that time, the company’s fixed assets were valued at close to £14.5 million and current assets at around £16.4 million, while net assets stood at £2.8 million.
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