The Paperchase shop inside Victoria Station in London, UK (Picture: Getty)
Stationary chain Paperchase is on the brink of administration, putting 173 stores and 1,500 jobs at risk.
The high street retailer has become the latest to file a notice to appoint an administrator.
This is a legal measure which will protect the brand from its creditors for 10 days and allows it to attempt to restructure the business in order to try to prevent it from collapsing.
Around 40% of the card and gift retailer’s trading is usually done in November and December so the various Christmas lockdowns hit the chain particularly hard.
Measures to combat coronavirus forced dozens of shops to close or curtail their operations throughout the festive period.
A spokesman 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.’
High street retailers have suffered significantly due to the impact of the pandemic. Sir Philip Green’s Arcadia Group – which owns Topshop – and department store Debenhams have been some of the most high profile names to fall into administration so far.
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