Wed, 27 Jan 2021 | BUSINESS SALE
High-street stationer Paperchase is set to be acquired by Permira Debt Managers in a pre-pack deal. The deal is expected to include up to 90 of Paperchase’s 125 UK stores. The stationary chain said in early January that COVID-19 restrictions had put “an unbearable strain on the business” and that it was close to appointing administrators.
Most of Paperchase’s stores were closed during the crucial November-December period in which the retailer generally makes 40 per cent of its annual sales. Many stores were said to still be trading profitably, but this wasn’t enough to offset losses.
The company, which had undergone a CVA in March 2019, had also been put under pressure in recent years by the increasing popularity of online card retailers Moonpig and Funky Pigeon, a trend that has only accelerated during lockdown.
One insider to the deal contrasted it to Boohoo’s acquisition of the Debenhams brand, in which all of the department store chain’s stores will close, saying that Permira Debt Managers see “a genuinely viable high street business which can emerge from the pandemic.”
However, a party reported to have held an early interest in acquiring Paperchase, questioned Permira Debt Managers’ long-term commitment to the retailer. Permira Debt Managers has provided funding to Paperchase since 2015. Pre-pack sales where the involved parties are connected are set to be subject to mandatory independent scrutiny from April 2021.
In its most recent financial report, for the year to February 2 2019, Paperchase reported gross profit of £14 million and a £3.4 million loss for the financial year on turnover of £125 million, which was down from £131 million in 2018.
The retailer’s fixed assets were valued at £14.4 million, while current assets were valued at £16.4 million and net assets amounted to £2.8 million.
Find businesses for sale here.
If you are looking for an exit, we can help!
Established in 1956, this family-owned business specialises in quality used cars and 4x4s, serving customers across the UK. Over the decades, it has built a strong reputation for exceptional customer service, reliability, and consistently positive re...
LEASEHOLD
Presently seeking interested parties in a growing South Yorkshire artisan bakery offering multiple sites.
Presently seeking interested parties in this business sale for a garden and greenhouse equipment supplier.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.