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