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.”
The firm has seen strong online trading, but amid further restrictions, the spokesman said: “We have to find a sustainable future for Paperchase.”
He added: “We are working hard to find that solution and this NOI (notice of intent to appoint administrators) 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.”
The retailer, majority owned by Primary Capital, in 2019 got approval for a Company Voluntary Arrangement, a model which allows firms to get new rent terms or exit certain sites.
