Paperchase is on the brink of collapsing into administration after sales were impacted by store closures at the end of 2020 – putting 1,500 jobs at risk.
The stationery chain, which has 127 outlets, confirmed it has filed a notice to appoint administrators from PwC to advise on its insolvency process.
“The cumulative effects of lockdown 1.0, lockdown 2.0 – at the start of the Christmas shopping period – and now the current restrictions have put unbearable strain on retail businesses across the country,” said a company spokesman.
“Paperchase is not immune despite our strong online trading.
“Out of lockdown we’ve traded well, but as the country faces further restrictions for some months to come, we have to find a sustainable future for Paperchase.
“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.”