Card Factory ‘considering bid’ for Paperchase

CARD FACTORY is reported to be considering a bid for rival Paperchase which is up for sale for £150m.

Any deal would see the Wakefield-based retailer operate more than 900 stores, adding Paperchase’s 130 UK stores and 30 overseas shops to Card Factory’s existing 764.

However such a move would mark new territory for Card Factory, which has built its fast growth by disrupting the market with its focus on budget cards. Paperchase is at the premium end of the market, and describes itself as “design-led”.

Paperchase was bought by private equity firm Primary Capital after its former owner Borders failed in 2010, and PwC and Financo have been appointed to advise on the sale. It reported strong Christmas sales figures, up 6.5% for the five weeks to December 27.

Card Factory has also enjoyed strong trading, with revenues up 8.1% in the 11 months to December 31. This was attributed to a combination of like-for-like sales growth, new store roll out and further growth in its online business, Getting Personal.