High street stationery chain Paperchase has been bought by Tesco just hours after entering administration - putting 820 jobs are at risk.
Tesco has bought the Paperchase brand and intellectual property but would not acquire its shops.
The sale came after the brand fell into insolvency for a second time in two years.
Jan Marchant, managing director of Home and Clothing at Tesco, said: "Paperchase is a well-loved brand by so many, and we're proud to bring it to Tesco stores across the UK.
Hundreds of jobs are now at risk
thinkretail
"We have been building out plans to bring more brands and inspiration to the ranges we currently offer, and this will help us to take those plans further."
Administrators Begbies Traynor said that the 106 stores in the UK and Ireland would continue to operate as normal for the time being.
It said: "On January 21, Mark Fry, Kirstie Provan and Gary Shankland, of Begbies Traynor, were appointed as joint administrators of Aspen Phoenix Newco Limited, which trades as Paperchase.
“Unfortunately, despite a comprehensive sales process, no viable offers were received for the company, or its business and assets, on a going concern basis.
“However, there has been significant interest in the Paperchase brand and attendant intellectual property.
“The joint administrators will continue trading the company’s operations in the short term, with all stores remaining open and trading as normal.”
Paperchase said it would “strongly urge” customers to redeem gift cards as soon as possible because they will not be accepted after two weeks.
The company was founded in 1968 by two art students and has had multiple owners in its 52 year history.
Tesco has bought the brand but not its stores
Nicholas.T.Ansell
In 2021 the impact of the Covid pandemic pushed it into administration with approximately 500 jobs being lost as a result of the rescue deal.
It was then sold again in August 2022 to a private investment firm led by the retail investor Steve Curtis.
Paperchase's administrators have promised updates in "due course" on the future of the brand.
