Administrator boosted by folding of Paperchase

The downfall of Paperchase has boosted the business of the stationery chain’s administrator.

Administrator Begbies Traynor Group has described Paperchase’s collapse as a “higher-value” insolvency case which helped to strengthen its financial performance. The restructuring specialist is set to generate up to £20.6m in pre-tax profit and up to £121.4m in revenue.

Begbies Traynor was appointed as Paperchase’s administrator after the retailer failed to attract any buyers.

Although Tesco stepped in and bought Paperchase brand last month, the deal did not include the chain’s high street stores. Last week, Begbies Traynor announced 106 Paperchase stores will close within weeks.