Paperchase shoppers warned to spend vouchers within DAYS after chain’s collapse

4 weeks ago admin

Paperchase shoppers have only days left to spend any vouchers they have before they become worthless.

The stationery chain collapsed into administration for the second time last month.

Tesco swooped in to purchase the Paperchase brand and intellectual property – but the buyout didn’t include its stores.

It means 106 Paperchase sites are at risk of closure, with many stores already hosting sales with “at least 20% off” goods.

Paperchase shoppers have also been advised to use up their gift cards as soon as possible, with February 14 being the last day they’ll remain valid.

Paperchase collapses into administration with 106 stores and 820 jobs at risk

When a business goes bust, the administrators can choose to stop accepting gift cards at any time.

Paperchase has appointed insolvency firm Begbies Traynor as administrators.

A statement from Begbies Traynor said: "On January 31 2023 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, this sale reflects the interest in the well-known and established brand and will enable the brand to continue in Tesco stores across the UK."

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Gift cards – your rights

If a business goes bust and you can't use your voucher, you can register a claim with the administrators.

However, you may not get your cash back, or only a portion of the voucher value back.

This is because you could well be in a long list of many creditors the company owes money to.

If the voucher value was for more than £100 and it was purchased with a credit card, you might be able to claim the money back under Section 75 of the Consumer Credit Act 1974.

Section 75 of the Consumer Credit Act 1974 puts both your credit card company and the retailer at joint liability if something goes wrong.

If the voucher was paid for with a debit card or was worth less than £100 and paid for with a credit card, you might be able to use Chargeback.

Sadly, this isn't enshrine in law like Section 75 – but the Law Commission says card providers will usually honour it when companies go into administration.

If the voucher was a gift, then you'd need to ask the person who bought it for you to claim the money back.

Full list of bank switch offers worth up to £200 – from Santander to TSB and First Direct