Paperchase has secured a rescue contract. This saves stores and protects employment.
The retailer is expected to release details later Wednesday, but Sky News has learned that the rescue agreement is a Pymira debt manager connected to the current private equity owner.
PaperChase has been owned by Primary Capital, a private equity company since 2010
The New Deal is expected to protect 90 of its 125 stores. Details will be announced this afternoon. Pymira’s debt managers have been funding retailers since 2015.
PaperChase appointed an administrator earlier this month, saying the pandemic has put a heavy burden on retailers.
A PaperChase spokesman said: “At the start of the Christmas shopping period, the cumulative effects of lockdown 1, lockdown 2 have created unbearable tensions for retailers across the country due to current restrictions.
“Despite our strong online trading, Paper Chase is not immune. We’ve traded well since lockdown, but as the country faces further restrictions for the coming months, we’re in the process of Paper Chase. We must find a sustainable future.
“We’re working hard to find a solution and this NOI is a necessary part of this work. This is not the situation we wanted to be. Our team has been amazing throughout the year. , I can’t fully appreciate their support.”
The closures throughout November and December last year wiped out the most important month of the year for retailers
Despite the rescue contracts and many stores being saved, some redundancy is expected to move on.
