Paperchase on Brink of Administration as Retailers Hammered by Lockdowns

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Paperchase on Brink of Administration as Retailers Hammered by Lockdowns
Paperchase on Brink of Administration as Retailers Hammered by Lockdowns. image: Paperchase

Paperchase on the brink of administration as retailers hammered by lockdowns.

Stationery retailer Paperchase is on the verge of going into administration, as the chain warned of “unbearable strain” on retailers due to the lockdowns. The retailer, which employs around 1500 people and has 127 shops, has filed a notice to appoint administrators to the business.

The move gives it a 10-day window to come up with restructuring proposals for the company and protects it from creditors for that period. Paperchase’s move comes a day after the government announced another national lockdown. ‘Non-essential’ retailers have been hammered by having to close branches due to the Covid-19 crisis, with numerous firms missing out on valuable high street sales.

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A spokesman for Paperchase said the company was not immune to the tough backdrop, despite strong online sales. “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.” He added that the company was “working hard to find that solution” with the administration notice a “necessary part of this work”. The accountancy firm PwC has been lined up to handle the process.

“This is not the situation we wanted to be in,” the Paperchase spokesman added. “Our team has been fantastic throughout this year and we cannot thank them enough for their support.”



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