The future of Guernsey’s branch of Paperchase is unknown following another forced closure of UK stores.
The national company has filed to appoint administrators, allowing it 10 days to figure out a rescue plan.
“The cumulative effects of lockdown one, lockdown two and now the current restrictions,” said a spokesperson, “have put unbearable strain on retail businesses across the country.”
Pictured: Paperchase isn’t classed as an essential retailer and will close for the latest UK lockdown.
40% of the firm’s sales are usually made in November and December, however the Christmas lockdown meant sales fell in UK stores and online sales haven’t mitigated the loss.
To cut costs Paperchase went through an insolvency process two years ago. This very may well put the business in a better position than those firms who haven’t done this before.
We don’t know what the future holds for the Guernsey branch, however, the firm remains cautiously optimistic.
“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.”
PwC will be running the NOI process.
It follows the Arcadia group – another national company, that owns Dorothy Perkins and Topshop – going into administration at the end of 2020.
Pictured top: “We have to find a sustainable future for Paperchase,” said a spokesperson.
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