Paperchase has signed a bailout deal that will keep around 1,000 jobs and most of the businesses in place after falling into administration.
However, the street map retailer said 37 of its 127 stores will permanently close their doors despite the move.
The administrators announced that Aspen Phoenix Newco, a newly formed company backed by Permira Debt Managers, would take control of the retailer.
Paperchase hired PwC administrators after revenue fell due to significantly lower visitor numbers due to coronavirus restrictions.
The group said the bailout will hold its position in the UK retail landscape, “albeit in a smaller and leaner way”.
The new owners said a “major transformation program” was currently underway to support the post-restrictions recovery.
Olly Raeburn, Managing Director of Paperchase said, “The cumulative effects of bans and associated restrictions make it imperative that we make this difficult but necessary decision to secure the future of Paperchase.
“This is the best opportunity for us to make sure the company is fit for purpose in this new retail environment.
“We had a close dialogue with all of our stakeholders during this process and are grateful for their continued support.
“We realize, of course, that this affects many of our colleagues and we will do everything we can to help them during this difficult time.”