Paperchase rescue deal to save 1,000 high street jobs
High street stationery retailer Paperchase is set to announce a rescue deal today that is expected to save around 1,000 jobs.
Paperchase will be sold through a pre-pack administration to Permira Debt Managers – connected to its current private equity owners – which has provided funding for the business since 2015, Sky News reported.
Up to 90 of the firm’s 125 stores could be salvaged, and around 1,000 jobs saved, although some redundancies are expected.
The deal is expected to be announced this afternoon.
Last week Paperchase secured more time in its race to avoid collapse, filing a second notice of intention to appoint an administrator, which gave the firm an additional ten days to negotiate a deal.
PwC had been lined up to handle proceedings if the company was unable to find a solution to its financial woes.
Paperchase filed its first notice of intention to appoint administrators earlier this month, saying the third coronavirus lockdown had put an “unbearable strain” on the retail sector.
A spokesperson for the company said at the time that the notice of intention to appoint administrators would allow it to “find a sustainable future” for the business.
“Paperchase is not immune despite our strong online trading,” the spokesperson said.