Paperchase was established in the UK as a design-led stationer from its inception in 1968 and now operates more than 150 stores around the world. The retailer produces its own product designs and patterns, which are created by an in-house design team, and tailors each store to its local market. Larger stores also offer artist and graphic design materials, handmade paper, wall-hangings, frames, furniture and handmade accessories. Its online operations are still developing, but it has developed strong partnerships with key retailers such as Amazon, Asos and Next. But Paperchase has faced intense pressure, which culminated in a CVA during 2019. The business narrowly avoided going under by agreeing to close 28 stores.
Smiggle has warned that its Australian parent company Just Group could pull the plug on funding for its UK business if economic conditions deteriorate.
With Arcadia Group becoming the latest high street retailer to pursue a CVA to close stores and slash rents, retail landlords are increasingly reaching the end of their tether. British Property Federation boss Melanie Leech outlines how the gulf between retailers and landlords can be closed
Paperchase is set to close at least five stores after winning credit approval for its proposed CVA this afternoon.
Paperchase has launched a company voluntary agreement (CVA) proposal after bringing in advisers from KPMG in January.
Paperchase will outline a series of restructuring options to key creditors at two crunch meetings this week, Retail Week has learned.
Advertisement
