PAPERCHASE is reportedly on the brink of administration after the coronavirus crisis hammered the UK’s high streets over Christmas.
A collapse of the stationary chain would put 1,500 jobs and 145 stores at risk, reports The Telegraph.
Paperchase is reportedly on the brink of administrationCredit: Alamy
Paperchase is said to have filed a notice to appoint administrators with accountancy giant PwC lined up to handle the process.
The retailer earns 40% of its sales in November and December, but coronavirus lockdown measures forced it to shut scores of shops over the festive period.
Paperchase is classed as a non-essential retailer, meaning all shops in Tier 4 were ordered to close in December.
Retail sales fell 3.8% in November, according to the Office for National Statistics.
Meanwhile, separate data from ShopperTrak showed high street footfall dropped 40% on the last Saturday before Christmas.
A spokesman for Paperchase told The Telegraph restrictions before Christmas had put “unbearable strain on retail businesses across the country”.
They added: “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 notice of intention 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.”
More to follow…
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