Paperchase has secured a rescue deal, which will save stores and protect jobs.
The retailer is expected to announce details later on Wednesday, however, Sky News learnt that the rescue deal is Permira Debt Managers who is connected to its current private equity owners.
Paperchase has been owned by private equity firm, Primary Capital, since 2010
The new deal is expected to protect 90 of the 125 stores. More details will be announced this afternoon. Permira Debt Managers have provided funding to the retailer since 2015.
Paperchase appointed administrators earlier this month, saying that the pandemic had put high strain on the retailer.
A spokesperson for Paperchase said: “The cumulative effects of lockdown one, lockdown two – at the start of the Christmas shopping period – and now the current restrictions have put unbearable strain on retail businesses across the country.
“Paperchase is not immune despite our strong online trading. Out of lockdown we’ve traded well, but as the country faces further restrictions for some months to come, we have to find a sustainable future for Paperchase.
“We are working hard to find that solution and this NOI is a necessary part of this work. This is not the situation we wanted to be in. Our team has been fantastic throughout this year and we cannot thank them enough for their support.”
Store closures throughout November and December last year wiped out the most important months of the year for the retailer
Despite the rescue deal and many stores saved, it is expected that some redundancies may go ahead.