Tesco buys Paperchase assets

The future of around 100 Paperchase stationery and greeting card shops in the UK is in doubt after the brand was acquired by supermarket chain Tesco.

Paperchase went into administration on 31 January, just months after it was purchased by retail entrepreneur Steve Curtis. Tesco has bought the Paperchase brand name and intellectual property rights in a pre-pack agreement, but the deal does not include any of Paperchase’s shops – which employ more than 800 staff.

The likelihood, therefore, is that the stores will close, making it the latest UK high street retailer to fail. Tesco, meanwhile, will pick up a recognised brand name which it can develop for its own stationery offering.

Opal to withdraw from graphic paper business

Nippon Paper has announced that its Australian subsidiary Opal will permanently cease the manufacture of graphic papers, which include A4 copy paper.

Opal’s white paper production at its Maryvale mill in Victoria has been suspended since 23 December 2022 (see also Analysis, OPI January/February 2023, page 11). This came after supplier VicForests was forced to halt eucalyptus timber production in an area inhabited by an endangered species of possum.

On 19 January, Opal said it had been unable to source viable alternative wood supplies to replace the VicForests shortfall, adding it was “seriously considering the potential future closure of white side operations” at the Maryvale mill.

Since then, parent company Nippon Paper confirmed Opal will withdraw from graphic paper manufacturing altogether after concluding that other procurement was not feasible. Paper machine M5 will be discontinued and Maryvale will focus on its packaging business via its four other machines.

M5 was the only remaining domestic copy paper machine in Australia, producing up to 220,000 tonnes a year. In the 12 months to 31 March 2022, it achieved an operating profit of A$264 million (US$184 million).

Nippon Paper said it would take a ¥20 billion ($150 million) impairment loss in relation to the decision to stop white paper production at Maryvale. About 160 jobs there are now at risk.

Askul acquires dental reseller

Japanese reseller Askul has made an acquisition as part of its expansion into the medical vertical. The company has bought an 85% stake in AP67, a group that owns dental mail order supplier FEED. The purchase price was not disclosed.

Buoyed by the surge in online sales during COVID, in the 12 months to 31 March 2021, AP67 reported sales of more than ¥14 billion ($106 million). This fell to ¥12.5 billion in the 2022 financial year and is expected to stay at around this level in the current fiscal year.

The ¥8.4 trillion Japanese healthcare sector is one of two strategic verticals – the other being industrial/MRO – Askul identified as key growth areas in 2021 as it looks to diversify away from its core OP business.

ISG elects new board; reveals Industry Week ’23

US dealer organisation Independent Suppliers Group (ISG) has elected its new board of directors.

Taking over as Chair of the group is Yancey Jones Jr, COO of The Supply Room Companies. Joining him on this year’s board are:

• Jordan Kudler, Legacy Office Solutions: Immediate Past Chair

• Paul McKinney, Eakes Office Solutions: Vice Chair

• Brian Kerr, Kerr Workplace Solutions: Secretary

• Thomas Jordan, Herald Office Supply: Treasurer

“I am very excited to build on all the progress that was made last year,” said Jones. “I truly appreciate the confidence the board has placed in the elected officers to lead Independent Suppliers Group in 2023.”

In other ISG news, the group has provided details of Industry Week ’23. Set to take place between 8-11 October, this year’s event will be held at the Hilton Riverside and the Ernest N Morial Convention Center in New Orleans, Louisiana.

Jones stated: “We are looking forward to bringing the industry together again in 2023. No event all year brings our dealer and supplier community together in a better forum to collaborate, strategise and connect.”

More information regarding Industry Week ’23 will be available in the coming months.

The long-awaited General Services Administration (GSA) e-commerce marketplace for US federal government purchasing has hit a potential roadblock.

In December 2022, the GSA finally issued its request for proposals (RFP) for providers of B2B online platforms in what is seen as a $1-$2 billion a year opportunity for the ad hoc purchasing of routine, commercial items – including business supplies.

The original deadline for submitting RFPs was 23 January 2023, although this was extended to 3 February following the inclusion of several amendments. However, the process

GSA e-commerce initiative delayed Staples Canada announces telecoms agreement

has now been put on hold after a solicitation protest filed with the US Court of Federal Claims by a group of plaintiffs led by the National Industries for the Blind (NIB).

The NIB is seeking a requirement for platform awardees to add a ‘block and substitute’ feature to their websites. It’s something used in government-managed channels to block the sale of an ‘essentially the same’ product and substitute an appropriate AbilityOne item. Buying from AbilityOne, which supports the blind and severely disabled, is mandatory for federal purchasers.

In response to the protest, the GSA has issued a request for information (RFI) in order to understand the feasibility and legality of the changes being sought by the NIB. For example, it is asking whether block and substitute is an available capability on existing platforms and, if not, how difficult it would be to implement.

Responses to the RFI will help the government determine whether the current RFP should be left unchanged, amended, or even cancelled. The deadline for submitting responses to the RFI was 23 February, shortly after OPI went to press.