Prolific High Street investor joins auction as retailer opens new store and promotes buyer
A new owner looks to be on the cards for Paperchase with prolific High Street investor Hilco believed to be joining the race to take over the greeting card and stationery retailer just 18 months after it underwent a pre-pack administration.
Sky News reported on Friday afternoon, July 23, that Hilco Capital, which owns Homebase and recently snapped up the Cath Kidston brand as well as previously owning HMV, is among a small number of parties engaged in talks about a deal with Paperchase‘s owner.
City sources told Sky News the discussions involving Hilco were at an early stage and might not lead to a transaction, and the names of the other bidders are not yet clear. The news also appeared in other media, including The Times.
When Paperchase became one of the retail casualties of the pandemic, Permira Credit took control as a result of a pre-pack administration in January 2021, which left many suppliers, including greeting card publishers, many thousands of pounds out of pocket.
The chain was trimmed back from having 1,300 staff across more than 125 UK sites, and has built back up to 95 standalone shops and 32 concessions. Permira Credit is understood to have invested in the digital offering as well as new shop openings and executive recruitment.
The owner appointed PricewaterhouseCoopers (PwC), which handled the pre-pack process, to oversee a sale following unsolicited enquiries from potential buyers earlier this year.
Sky News said a person close to the company told them in April that Paperchase’s digital sales had grown strongly in the 2019-2021 period, with plans to expand that presence into seven European countries through an Amazon Marketplace offering.
The retailer has also been expanding its bricks-and-mortar presence, with a brand-new store having opened in Birmingham’s New Street station – a second outlet in addition to the one on the first floor. This is part of a planned opening schedule of new stores in a similar vein.
The buying team has also been on the move, with card buyer Tori Heath-Smith being promoted to stationery buyer and Pollyanna Bell-Burke making the move into cards from gift buying with the company.
Paying tribute to Tori’s achievements senior buyer Carlo Marinelli said she has “done such a fantastic job on cards over the past 18 months, getting us into a really strong and stable position after the post-administration upheaval”.
Tori will take up her new role of stationery buyer on August 1 coinciding with Pollyanna having been promoted from gifts buyer to card buyer. “I’m very confident Pollyanna will continue the good work that Tori has started,” added Carlo.
For Pollyanna, who joined Paperchase in February 2015, it is something of a return to cards with the retailer, albeit at a more senior level: “I began my Paperchase career as a BAA on cards so I’ve always kept an interest in our card offer and am looking forward to getting started!”
As to their appeal, Pollyanna told PG Buzz: “I like the way cards keep people of all generations connected and the sentiment that every card written has behind it, bringing so much joy to the recipient. I’m excited for the new challenge.”
