High street stationery retailer Paperchase, which has shops in Tayside and Fife, has fallen into administration.
The company, which employs hundreds of workers, has appointed administrators from Begbies Traynor to oversee the insolvency process.
The retailer has 106 shops including stores in Dundee’s Overgate Shopping Centre, Market Street in St Andrews and Perth High Street. It also has a concession within Next in Kirkcaldy’s Fife Central Retail Park.
It comes after Paperchase failed to secure a buyer after being placed on the market by retail veteran owner Steve Curtis.
The stores are currently still trading but workers face an uncertain future.
Paperchase administration statement
The administrators said: “On January 31, Mark Fry, Kirstie Provan and Gary Shankland, of Begbies Traynor, were appointed as joint administrators of Aspen Phoenix Newco Limited, which trades as Paperchase.
“Unfortunately, despite a comprehensive sales process, no viable offers were received for the company, or its business and assets, on a going concern basis.
“However, there has been significant interest in the Paperchase brand and attendant intellectual property.
“The joint administrators will continue trading the company’s operations in the short term, with all stores remaining open and trading as normal.”
It comes only four months after the retailer was bought by Mr Curtis. He has previously backed Jigsaw and Tie Rack.
Paperchase also previously fell into administration two years ago, with the closure of 37 stores.
Overgate disappointment
Malcolm Angus, centre manager at Overgate Shopping Centre in Dundee, said he hopes a buyer will be found for the business.
He said: “Overgate is obviously disappointed at today’s news in respect of Paperchase and we sincerely hope the company can attract a buyer, or funding to continue trading, to support the business and staff.
“We will be in discussions with the company over the coming weeks to understand their retail business model, and its long term sustainability.”
Conversation