Tesco has picked up the intellectual property of failed stationery retailer Paperchase after the seller went into administration earlier this week. The deal will see Tesco acquire the Paperchase name and brand, but is unlikely to also include its stores.
The future of the retailer’s 820 staff remains unclear.
Sky News recently revealed that Paperchase had been put up for sale just four months after its most recent change of ownership. The chain was taken over in August 2022 by Steve Curtis, an experienced retail investor who has been involved with Tie Rack and Jigsaw.
Retail Realisation, an industry advisory firm with which Curtis and turnaround firm Rcapital are affiliated, was also involved in last summer’s deal.
Just four months later, PricewaterhouseCoopers was appointed to find new backers. The retailer is now part of a pre-packed administration deal and Tesco has snapped it up.
Commenting on the move, Samantha Mansfield, Head of Strategy Experience & Commerce, Merkle UK says: “Paperchase’s fall into administration is indicative of a wider change in consumer mentality. High street brands have been struggling for years, but post-pandemic and amid the cost-of-living crisis their demise has only accelerated as consumers continue to cut spending and search for the best deals online. It is only by investing in online capabilities that companies will be able to adapt to, and predict, market changes.
“With Tesco closing in on Paperchase’s brand name, we’re seeing a new age of British retail. Only by innovating will companies be able to adapt to, and predict, market changes. It is now a stark fact – companies that don’t make the right investments will not stand the test of time. For retailers looking to survive, it’s about making the simple things count to provide customers with any reassurance they can give. Creating emotional connections with consumers through transparency and shared values to enhance the customer experience is key to cementing loyalty in the long run. Right now, retailers that play the long game will ultimately have the best chance at success.”
