Paperchase to close stores as it announces CVA

Specialist stationery and greeting card retailer, Paperchase, has formally launched a CVA following weeks of speculation. The company, which is owned by private equity firm, Primary Capital had already appointed KPMG at the start of this year to help it find a way forward.

Five of the company’s stores are expected to close but for now the business will operate as usual.

Rental costs were at the heart of Paperchase’s decision to enter a CVA following consultation with landlords. The high street business, which operates from 145 stores around the UK, will now see rents reduced by 50% in 28 of its stores for the next three months and is seeking rents linked to turnover in around half of its outlets.

The Paperchase management team, headed up by CEO, Duncan Gibson, has said it believes the CVA is the best solution if it is to survive as a business in a more sustainable way. A vote will be taken on the CVA proposal on March 22 and will require the approval of at least 75% of creditors if it is to move forward.

Accounts filed at Company’s House showed that Paperchase’s pre-tax profits fell from more than £600,000 in 2017 to a loss of £6.3 million last year.

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on whatsapp
Share on email

Leave a Comment

Your email address will not be published. Required fields are marked *

Related Articles

New brand identity for Waterford

Luxury crystal glass manufacturer, Waterford, has launched a new brand identity created by London design agency, Identica, including a new logo, colour palette, lifestyle photography

Read More »
Latest Stories

Piece Together The Universe

These beautiful puzzles use amazing and inspiring imagery licensed from NASA’s Hubble Space Telescope to help you piece together the ultimate jigsaw. With 3 to

Read More »

Free G-spotted newsletter subscription