Paperchase will continue to honour gift cards but the joint administrators are urging customers to redeem them as soon as possible, and within the next two weeks. Paperchase was previously rescued from administration in January 2021 by Permira Debt Managers, one of its lenders. However Begbies Traynor said no viable offers were received for the company on a going concern basis. Britain’s biggest grocer said it came at a time when it was expanding its brand offering in its stores, and said it would share more details with customers shortly. Administrators from the insolvency firm Begbies Traynor have been appointed to handle Paperchase’s operations in the short term. They said the company’s stores would remain open and continue to trade as normal.

The collapse of Paperchase was “not altogether a surprise”, said Stephen Springham, the head of retail research at the estate agents Knight Frank, “given its previous CVA history and its pass-the-parcel history of private equity ownership”. Earlier in January, the greetings cards and gifts retailer said it required additional funding and had asked Begbies Traynor and PwC to advise it on strategic options, including the sale of the business. 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, the managing director of home and clothing at Tesco.