Paper Chase is on the brink of control as the majority of stores were forced to close during Christmas.
The retailer, with 127 stores and 1,500 employees, has filed a notice from the PWC appointing managers. The group says online sales are strong, but closing closures was not “immunity.”
Typically, 40% of sales comes from trading in November and December.
PaperChase received a company’s Voluntary Agreement (CVA) in March 2019 when it attempted to cut costs.
The spokesman said: “Cumulative effects of lockdown 1.0 and lockdown 2.0 at the start of the Christmas shopping period – current restrictions put us at a strain that will not stand up to retail businesses across the country.
“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 (notification of intent to appoint an administrator) is a necessary part of this work. This is not the situation we wanted to be. I. Our team has been amazing throughout the year and we can’t fully appreciate their support.”
News from PaperChase arises when Rishi Sunak announces a new grant for the company. The grant is worth around £4 billion and is expected to benefit over 600,000 business properties across the UK.
Sunak said: “New strains of the virus pose a huge challenge for us all, and we had to tighten restrictions even further while the vaccine was rolled out.
“Through the pandemic, we have been taking swift action to protect our lives and livelihoods. Today, we are announcing further cash injections to support businesses and jobs through the spring. This is It will help businesses get through the next few months, and it will help keep jobs so they are ready to go back when workers can resume.”
