Almost two years ago now, Paperchase launched a company voluntary arrangement to cut costs.
Today we hear the stationery chain has filed a notice to appoint administrators. This notice will provide the company with breathing space from creditors and any legal action whilst a rescue plan is worked on.
It comes as most of its 127 stores were forced to close over the Christmas period. A spokesperson for the company remarked: ‘’The cumulative effects of lockdown one, lockdown two – at the start of the Christmas period – and now the current restrictions have put unbearable strain on retail businesses across the country’’.
Though paperchase has an online presence, its strong online trade has not made it immune from the impact of shop closures across the country.
The chain has 10 working days to find a solution.
‘’Out of lockdown we’ve traded well, but as the country faces further restrictions for some months to come, we have to find a sustainable future for Paperchase. We are working hard to find a solution and this is a necessary part of this work. This is not the situation we wanted to be in.’’
1,500 jobs are at risk.