Latest retailer in trouble
Paperchase appoints advisers to look at restructuring
Paperchase’s Union Square unit in Aberdeen is among 130 in the UK
Paperchase, the gift card and stationery retailer, has bought in advisers to help draw up a rescue plan that may lead to the closure of some of its 130 stores in the UK and 30 overseas.
Restructuring experts from KPMG are working on a company voluntary arrangement for Paperchase which has become the latest British retailer to be hit by the sector’s chronic slump in footfall. It employs 2,000 staff.
The company is the latest to report difficult trading on the high street. Shares in its rival Card Factory plunged last week while Marks & Spencer has announced the closure of a further 17 stores and Debenhams is also expected to shut a further 40 stores in addition to 50 already announced.
Sports Direct owner Mike Ashley, who owns almost 30% of Debenhams, won enough votes on 10 January to force chairman Sir Ian Cheshire to resign and to remove CEO Sergio Bucher from the board.