Administration 28 January 2021 to 27 January 2023

Paperchase Products Limited ( “the Company”)  - in Administration - completes sale to Aspen Phoenix NewCo (continuing to trade as “Paperchase”) 

Zelf Hussain, Rob Lewis and Rachael Wilkinson of PwC were appointed as Joint Administrators to Paperchase Products Limited on 28 January 2021, securing an immediate sale to Aspen Phoenix NewCo, minimising disruption to the business, and providing continuity for customers and all other parties.

The Company operates as a retailer of greeting cards, wrap, gifts and stationery from 127 sites across the UK. It also operates concessions in a number of department stores including House of Fraser, Selfridges and Fenwicks, and through various Next stores. Together with its store portfolio, it also has an ecommerce business. 

The Company employed 1,278 staff across its store portfolio, head office function and its distribution centre.

The transaction includes the sale of a substantial part of the business, stores and assets to a newly incorporated company, preserving jobs, securing a sustainable outcome for customers, suppliers and other key stakeholders, albeit with a smaller, streamlined retail footprint. 

However, regretfully the administrators will also have to close a small number of stores.

Zelf Hussain, Joint Administrator and restructuring partner at PwC, said:

“This sale has preserved jobs, customer relationships and maintained a trading partner for suppliers despite one of the most challenging economic climates for many years. 

“For retailers with a solid strategy there is a genuine chance to work out a viable solution for longer-term recovery where an online focus can co-exist with a significant high street presence." 

“Our primary role will be to maintain the store estate and support all staff during the transition period.” 

Update 7 March 2022

We previously issued a Notice of Intended Dividend ("NOID") with a last date for proving of 23 November 2021. Due to unforeseen circumstances this was cancelled on 13 January 2022. At present we are working to finalise all matters related to this before we will be in a position to issue another NOID. We are unable to confirm when this will be, however will post further updates for creditors when information is available to us. 

Contacts

Please use the dedicated email address below for any queries in relation to the administration. Please review the FAQ sections as linked below as your query may be able to answered from these details:

uk_paperchase_creditors@pwc.com

Submitting a claim

Preferential claims 

The last date for proving is 23rd November 2021. The preferential claim amounts will be paid in full. This payment will be made in advance of the unsecured dividend to those that this applies to. 

Unsecured claims

The Administrators are of the view that there are sufficient realisations to allow a first and final distribution to be made to unsecured creditors via the Prescribed Part. The Administrators issued a Notice of Intended Dividend to all known creditors who have not yet proved their debt stating the last date for proving of 23 November 2021. The Prescribed Part (the fund to pay a dividend to unsecured creditors and meet the costs of doing so) is £600,000. The unsecured amount will not be paid in full; payment will be made when all preferential elements have been distributed and within the period of two months from the last date for proving.

Documents to download

• Form AM01 - Notice of administrator's appointment
• Joint Administrators’ report to creditors on the pre-packaged sale of the business and part of its assets
• Joint administrators' proposals for achieving the purpose of the administration
• Form AM06 - Notice of approval of administrator's proposals
• Joint Administrators' Remuneration report
• Here is a link to the most recent guide to insolvency practitioner's fees for creditors
• Notice to preferential creditors seeking decisions by correspondence by 2 July 2021
• Joint Administrators' first progress report for the period 28 January 2021 to 27 July 2021
• Notice to Preferential Creditors seeking decisions by correspondence
• AM19 - Notice of extension of period of administration
• Joint Administrators' progress report for the period 28 July 2021 to 27 January 2022
• Joint Administrators' progress report for the period 28 January 2022 to 27 July 2022
• Joint Administrators' final progress report for the period 28 July 2022 to 27 January 2023

Zelf Hussain, Rob Lewis, and Rachael Wilkinson were appointed as Joint Administrators of Paperchase Products Limited to manage its affairs, business and property as its agents and act without personal liability. They are licensed in the United Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales.

The Joint Administrators are bound by the Insolvency Code of Ethics which can be found at: https://www.gov.uk/government/publications/insolvency-practitioner-code-of-ethics

The Joint Administrators may act as controllers of personal data as defined by the UK data protection law depending upon the specific processing activities undertaken. PricewaterhouseCoopers LLP may act as a processor on the instructions of the Joint Administrators. Personal data will be kept secure and processed only for matters relating to the Joint Administrators’ appointment. Further details are available in the privacy statement on the PwC.co.uk website or by contacting the Joint Administrators.