MORE than 100 branches of the stationery chain Paperchase look set to close after Tesco bought the brand name but not its shops.

Paperchase has warned customers to use up any gift cards within the next fortnight after going into administration.

READ MORE: Paperchase confirms sale talks after reports administrators lined up

Administrators from Begbies Traynor announced they had failed to find buyer for the business, which has branches inside Next at Castlepoint and at the Furlong, Ringwood.

However, the announcement was swiftly followed by the news that Tesco was buying the brand and intellectual property but not the 106 branches, putting hundreds of jobs at risk.

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.

“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.

“We look forward to sharing more with our customers in due course.”

Begbies Traynor said in a statement: “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.

Begbies Traynor, which was appointed on Tuesday, said it would continue to monitor trading in stores and provide further updates in “due course”.

But all 106 stores will remain open for the time being, the firm said