Paperchase is on the verge of administration with up to 1,500 jobs in peril across its 127 stores
Mike Woodcock, the company’s chief financial officer, filed court papers today indicating plans to appoint administrators to Paperchase Products Limited, its main operating business.
All of its 127 across the country, and 46 concession stalls, were closed for five months last year due to lockdowns, which put an “unbearable strain” on the company.
A spokesman said that 40% of the company’s sales are usually made in November and December, and the second national lockdown in November, followed by Tier 4 restrictions in London, had a “significant impact” on sales.
They added that filing the notice to appoint an administrator is to provide the company with “breathing space” so it is able to quantify “taking its stock of exactly where it is.”
Paperchase now joins Debenhams, which last month said it would cease trading putting 12,000 jobs at risk. Arcadia Group, which owns Topshop and Dorothy Perkins,Edinburgh Woollen Mills’ and the brands Peacocks and Jaeger.
