A stationery chain has become the latest retailer to pursue a form of insolvency to try to shore up its finances by closing shops and cutting rents.
Paperchase, which has 145 stores, said yesterday that it was starting a company voluntary arrangement to seek permission from creditors to close “a small number of loss-making stores” and to renegotiate rents. It wants to alter some rental agreements to link the amount it pays to store turnover.
The chain was bought by Primary Capital, a private equity firm, in 2010 for £20.4m, it employs 1,750 people. Like other bricks-and-mortar chains, Paperchase is struggling with tough conditions on the high street as shopping moves online.
