Paperchase have issued a Notice of Intent to appoint administrators to save the chain from collapse.
In the wake of lockdown 3, Paperchase have issued a Notice of Intent to appoint administrators, bringing PwC on board to find a long-term solution for the survival of the business.
The card and stationery retail chain aren’t classified as essential businesses and have closed under the latest restrictions, further impacting the turnover and profitability after previous lockdowns and restrictions.
A spokesperson on behalf of Paperchase said, “The cumulative effects of lockdown one, lockdown two – at the start of the Christmas shopping period – and now the current restrictions have put unbearable strain on retail businesses across the country. Paperchase is not immune despite our strong online trading. 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 that solution and this NOI is a necessary part of this work. This is not the situation we wanted to be in. Our team has been fantastic throughout this year and we cannot thank them enough for their support.”
Paperchase underwent a CVA in March 2019 but the road to recovery was impeded by the various lockdowns in 2020. In normal years, 40% of sales come in November and December for Paperchase. The company hope that by filing this notice it will give them the time needed to work out the right shape of the business to go forward.