Paperchase files notice to appoint administrators as coronavirus puts "unbearable strain" on chain

A UK stationery retailer has announced that it has filed for administration as lockdown restrictions put “unbearable strain” on the chain.

Paperchase, founded in London, has 127 stores across the country, all of which were forced to close for several months last year due to national lockdowns caused by the spread of Covid-19.

The company has filed a notice to appoint administrators as it aims to create a “sustainable future” for itself and its 1,500 employees.

A spokesman for Paperchase commented: “The cumulative effects of lockdown 1, lockdown 2 - at the start of the Christmas shopping period - and now the current restrictions have put unbearable strain on retail businesses across the country.

“Paperchase is not immune despite our strong online trading.

“Out of lockdown we’ve traded well, but as the country faces further restrictions for some months to come, we have to find a sustainable future for Paperchase.

“We are working hard to find that solution and this NOI [Notice of Intent to appoint administrators] is a necessary part of this work. This is not the situation we wanted to be in.”