Tesco buys Paperchase brand leaving stores – including the one in Newbury's Parkway Shopping centre – under threat of closure

Newbury’s Paperchase is facing potential closure after the stationery chain’s brand was bought by Tesco.

The sale does not include the shops or workforce which leaves the 106 branches – one of which is in Parkway Shopping centre – facing potential closure.

Paperchase hired administrators Begbies Traynor this morning (Tuesday) after it failed to secure a rescue package.

Tesco then announced it was buying the brand and intellectual property, but not the stores.

Administrators said the company would continue trading in the “short-term” with “stores remaining open and trading as normal”.

But the stationery chain, which was also bought out of administration in January 2021, has urged people with gift cards to use them within the next two weeks.

Jan Marchant, managing director of Home and Clothing at Tesco, said: "Paperchase is a well-loved brand by so many, and we're proud to bring it to Tesco stores across the UK.

"We have been building out plans to bring more brands and inspiration to the ranges we currently offer, and this will help us to take those plans further."