The future looks unclear for Belfast’s two Paperchase stores after the company went into administration before the brand was rapidly purchased by Tesco.

The retailer hired administrators on Tuesday morning after the struggling business was unable to secure a rescue sale. Tesco has announced a deal to buy the brand and intellectual property from the insolvency specialists.

There are currently two Paperchase stores in Belfast, one on Arthur Street and one in Forestside. While it remains unclear exactly how much of the brand’s workforce is based in Northern Ireland, it is thought that 820 jobs are at risk across the UK and Ireland.

Paperchase’s 106 branches face potential closure after Tesco agreed to buy the high street stationery chain’s brand but not its shops or workforce.

The retailer hired administrators on Tuesday morning after the struggling business was unable to secure a rescue sale. The move means Paperchase’s stores are expected to shut, with hundreds of shop workers likely to face redundancy.

Paperchase appointed administrators from Begbies Traynor to oversee the insolvency process. It came after the ailing firm failed to secure a buyer after being placed on the market by retail veteran owner Steve Curtis.

The administrators said: “On January 31, 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.”

They added: 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.”

The company said it will continue to honour gift cards in the short-term but stressed it will “not be possible” to redeem these after two weeks.