Tesco PLC (LSE:TSCO) snapped up the brand and intellectual property of Paperchase, just hours after the stationary chain appointed administrators.
“Paperchase is a well-loved brand by so many, and we’re proud to bring it to Tesco stores across the UK,” said Jan Marchant, an executive at Tesco.
The purchase does not include the 106 sites in the UK and Ireland, which employs around 820 workers - leaving many jobs in doubt, just as Tesco announces thousands of its own job cuts as part of a store restructuring.
Two weeks ago, the retailer announced it was for sale after struggling to recover from the pandemic.
A statement from administrators Begbies Traynor (AIM:BEG) said “no viable offers were received for the company, or its business and assets, on a going concern basis.”
Stores will remain open as normal and will honour gift cards for the next two weeks, the administrators added.
Paperchase was bought out of administration in 2021 by private equity group Permira before being purchased by a consortium headed by retail investor Steve Curtis in August.
Tesco is currently trading at £2.47 having fallen 0.1% today.