Stationery chain Paperchase is on the verge of an administrative breakdown after sales were impacted by closings late last year.
The company, which has 127 branches and 1,500 employees, has confirmed that it has filed a notice to appoint PwC administrators to advise on the bankruptcy process.
Paperchase embarked on a reorganization of the Company Voluntary Arrangement (CVA) in March to change its fate, but saw that it was heavily influenced by the pandemic.
A Paperchase spokesman said, “The cumulative effects of Lockdown 1.0, Lockdown 2.0 – at the start of the Christmas shopping season – and now the current restrictions have put an unbearable strain on retailers across the country.
“Despite our strong online trade, Paperchase is not immune.
“We did well out of lockdown, but with the country facing further restrictions in the coming months, we need to find a sustainable future for Paperchase.
“We are working hard to find this solution, and this Notice of Intent (Notice of Intent for Appointment of Administrators) is a necessary part of that work. This is not the situation we wanted to be in.
“Our team has been fantastic all year round and we cannot thank them enough for their support.”