Paperchase on the brink of collapse as Covid-19 lockdowns hit sales
Paperchase is on the brink of becoming the first major retail collapse of 2021 after the stationary chain was forced to close stores over Christmas.
The retailer has filed a notice of intention to appoint administrators, with PwC lined up to handle proceedings, following the announcement of a third nationwide lockdown.
The card retailer, which has 173 stores and concessions, earns 40 per cent of its sales in November and December, but was forced to shutter branches across the country in the run-up to Christmas.
Paperchase said coronavirus restrictions have put “unbearable strain” on the retail sector, saying lockdowns had forced it to “find a sustainable future” for the business.
A spokesperson for 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.”