Wed, 27 Jan 2021 | BUSINESS SALE
High-street stationer Paperchase is set to be acquired by Permira Debt Managers in a pre-pack deal. The deal is expected to include up to 90 of Paperchase’s 125 UK stores. The stationary chain said in early January that COVID-19 restrictions had put “an unbearable strain on the business” and that it was close to appointing administrators.
Most of Paperchase’s stores were closed during the crucial November-December period in which the retailer generally makes 40 per cent of its annual sales. Many stores were said to still be trading profitably, but this wasn’t enough to offset losses.
The company, which had undergone a CVA in March 2019, had also been put under pressure in recent years by the increasing popularity of online card retailers Moonpig and Funky Pigeon, a trend that has only accelerated during lockdown.
One insider to the deal contrasted it to Boohoo’s acquisition of the Debenhams brand, in which all of the department store chain’s stores will close, saying that Permira Debt Managers see “a genuinely viable high street business which can emerge from the pandemic.”
However, a party reported to have held an early interest in acquiring Paperchase, questioned Permira Debt Managers’ long-term commitment to the retailer. Permira Debt Managers has provided funding to Paperchase since 2015. Pre-pack sales where the involved parties are connected are set to be subject to mandatory independent scrutiny from April 2021.
In its most recent financial report, for the year to February 2 2019, Paperchase reported gross profit of £14 million and a £3.4 million loss for the financial year on turnover of £125 million, which was down from £131 million in 2018.
The retailer’s fixed assets were valued at £14.4 million, while current assets were valued at £16.4 million and net assets amounted to £2.8 million.
Find businesses for sale here.
If you are looking for an exit, we can help!
Supplies e-bikes and related products, including mechanical bikes, powered ride-along toys and accessories, to blue-chip organisations across the UK.
LEASEHOLD
A small team of three of us focus on sales, purchasing, and administrative tasks. The business could easily be integrated within an existing team to support higher profits.
RELOCATABLE
Specialises in sales of rare, vintage and celebrity-owned instruments, including acoustic, electric and bass guitars, as well as amplifiers, effects pedals and accessories.
LEASEHOLD
|
19
|
|
Apr
|
Peer-to-peer lending business enters administration | DIVISION SALE
Business Loan Network, a peer-to-peer lending business, has ...
|
19
|
|
Apr
|
Historic Burtonwood brewery put up for sale | COMMERCIAL PROPERTY
Molson Coors' Burtonwood Brewery has been put up for sa...
|
16
|
|
Apr
|
Owner of Cabot Circus shopping centre in sale talks | BUSINESS SALE
The owner of Cabot Circus shopping centre in Bristol has con...
Sign up to receive our acquisition alert emails to get your FREE guide
|
06
|
|
Jan
|
Paperchase close to administration amid “unbearable strain” of lockdown | ADMINISTRATION
Cards and stationary retailer Paperchase has filed notice of...
|
27
|
|
Oct
|
Dog treats company acquired by Spectrum Brands | BUSINESS SALE
Nottingham-based pet treat and toy maker Armitage Pet Care h...
|
18
|
|
Mar
|
Laura Ashley enters administration as virus hits funding hopes | ADMINISTRATION
Home furnishings and fashion retailer Laura Ashley has filed...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources