Paperchase insolvency fears grow for suppliers

Retailer for sale with a second pre-pack looking possible

As PG went to press Paperchase was believed to be lining up corporate recovery firm Begbies Traynor to oversee a potential insolvency process even as the greeting card and stationery retailer continues to seek a solvent rescue deal.

Sky News revealed on 17 January, that the move at the High Street chain follows the previous week’s news of being put up for sale just four months after its latest owner took over.

Sky News city editor Mark Kleinman reported he learnt that the retailer, which current owner Steve Curtis had asked PricewaterhouseCoopers (PwC) to auction, had put Begbies Traynor, the professional services firm, on standby to handle a potential insolvency.

City sources said Paperchase was continuing to seek a solvent rescue deal, and that Begbies' prospective role represented "sensible contingency planning" in the event one did not materialise.

A further pre-pack administration is now looking increasingly likely, the sources told Sky News - the same process adopted when Paperchase was bought by Aspen Phoenix Newco Ltd, a legal entity of Primera Capital, its former owners.

WHS expansion continues

Steve Curtis is an experienced retail investor who has led investments in chains such as Tie Rack and has been an operating partner at turnaround firm Rcapital and, reporting on Wednesday 11 January, Sky News said he was understood to be seeking to close a sale in the coming weeks as “several sources said an insolvency process may be required to expedite a transaction”.

PwC brokered the deal which saw Steve Curtis and industry advisory firm Retail Realisation, with which he and Rcapital are affiliated, take control in August 2022 when there were 96 standalone Paperchase shops and 32 concessions in House of Fraser, Selfridges, and Next, and the new owners were believed to back a plan to work towards increasing that to approximately 150 stores.

Adding 15 new UK stores is WHSmith’s target for this year as the 230-year-old greeting card, stationery and convenience retailer posted its latest trading update.

With 150 store openings expected across 16 countries, WHS’ shops in airports and railway stations have benefited from a rebound in global travellers, with total revenue up 41% in the 20 weeks to 14 January, compared to a year ago.

The figures show the High Street arm saw revenue down by 2% compared with the same period last year and 14% lower than 2019, however, the UK Travel side saw a 70% rise on 12 months’ ago.

CBG gives the gifts

In what is Carte Blanche’s first major gifting launch since 2020, CBG is preselling the collection, which is targeted at indies, and includes both core Signature and Essentials offerings as well as two trend-led capsule ranges (Lakeview and Tropical Oasis).

“We very much want to help our independent retail stockists to create theatre in store and so are supporting the launch with a POS suite, encompassing window posters, shelf liners, header boards and ceiling danglers,” confirmed marketing manager Grace Elphinstone.

In addition, a competition for the best window display will run to coincide with the April launch, rewarding the winner with a range of prizes including a Tatty Teddy costume character visit.

The company will also be engaging with Me to You’s consumer fans via social media, and adding a dedicated stockists space on the MetoYou.com website, as well as furnishing indies with their own social media packs, including an amendable press release and lifestyle imagery. Above: Part of the Lakeview capsule collection which features watercolour styling.

GCA Dragons and Conference

It’s full steam ahead as the GCA prepares for the upcoming Dragons Speed Dating event with bookings also being taken for the association’s 2023 Conference & AGM.

Scribbler, Postmark and Presents

Sheen are the newest dragons to sign up for the Dragons Speed-dating event, joining WHSmith, Stationery Supplies, Card Factory and Tesco among others, to whom publishers can pitch at the 2 March afternoon event at London’s Business Design Centre

Meanwhile, there’s a save the date invitation to all association members for the 2023 GCA Conference & AGM which will take place at the Royal Armouries in Leeds, the 2023 UK City Of Culture, on Thursday, 28 September, with tickets now available from the GCA website and a special earlybird booking offer of last year’s price of £80, which will rise to £95.

Already signed up as the publisher keynote speaker is Wendy JonesBlackett, founder of the namesake brand that’s based close to the city - and is the artist behind this year’s branding for the event, which includes the Royal Armouries and Leeds’ signature symbol of owls.

MBE for indie greeting card retailer founders

In his first New Year’s Honours list, King Charles awarded MBEs to David and Ruth Southgate, who founded Retas 2022-nominated Cards N Things in Norwich in 1984 which is now run by their son Paul and his partner Helen.

David and Ruth were honoured for more than half a century of charity and community work, having founded a church in Hellesdon, Norwich, building its current premises and helping young people and adults with guidance, a luncheon club for the elderly, and a local orchestra, raising over £100,000 for charities.