THE stationery and greetings cards chain Paperchase is to be rescued in a deal which will save 90 of its 127 stores.

Administrators have said around 1,000 jobs will be saved by the sale of the business, but 37 branches will close permanently.

Staff are being consulted before the list of branch closures is revealed.

In Hampshire, Paperchase has stores at Southampton’s Westquay Shopping Centre, Whiteley Shopping Centre, St George’s Street in Winchester and the Furlong in Ringwood.

Paperchase set to go into administration

The chain, which called in administrators from PwC earlier this month, will be taken over by newly formed company Aspen Phoenix Newco, which is backed by Permira Debt Managers.

The group said the rescue deal would retain its position in the UK retail scene, “albeit in a smaller and more streamlined manner”.

Its new owners said that a “comprehensive transformation programme” is currently under way to help it rebound once restrictions lift.

Olly Raeburn, chief executive at Paperchase, said: “The cumulative impact of lockdowns and related restrictions means that it is imperative we make this tough but necessary decision to safeguard Paperchase’s future.

“In taking this action, we are giving ourselves the best opportunity to ensure that the business is fit for purpose in this new retail environment.

“We have been in close dialogue with all of our stakeholders through this process and are grateful for their continued support.

“We, of course, recognise that this affects many of our colleagues and we will do all we can to assist them during this difficult time.”