Stationery chain Paperchase has put itself up for sale and has hired administrators Begbies Traynor (AIM:BEG) to advise on its future, as a number of buyers have expressed interest in the business, according to multiple reports.
The company, which has 106 stores in the UK and Ireland and employs 820 people, was recently sold to a consortium led by retail investor Steve Curtis. This is the second time in a year that the 50-year-old chain has been sold, as another investor group bought it out of administration in January 2021.
The company has been struggling in recent years, with trade hit hard by the coronavirus lockdowns. Paperchase had to close a number of stores and let go of a significant number of employees during the pandemic.
The company also had to deal with the challenges of shifting consumer behaviour, as more people turned to online shopping.
Despite the challenges, Paperchase is still considered a well-known and respected brand in the stationery industry, and the company is optimistic about the future.
The company has hired consultants PwC to handle the sale of the business and is confident that the right buyer will be found to take the company to the next level.
The company confirmed that all Paperchase stores and the website will continue to trade as normal during this period. It is also worth noting that Paperchase has a strong online presence and has a loyal customer base, which will be an attractive feature for any potential buyer.
In addition, the company has a wide range of products and a strong reputation for design and innovation, which are also strong selling points. With the right strategy and leadership, Paperchase has the potential to bounce back and continue to be a leading player in the stationery industry.