Paperchase has secured more time to explore restructuring options, having filed a second Notice of Intent (NOI) that was granted by the courts. This means that the retailer now has up to February 3 before an announcement is made as to the restructuring plans for the business.
“The fact that a second NOI has been granted is not bad news as it means that the conversations are going well,” assured Will Booth of Tulchan (the communications company brought on board to liaise with the media).
“It would only have accepted by the courts if it was in the interests of all parties,” he added.
As Will highlighted, “situations such as these are complicated at the best of times, but with this all happening through Covid adds to the complexity.”
Prior to the second NOI being granted, the industry was on tenterhooks bracing itself for news about Paperchase’s future that would have been announced by Wednesday (January 20).
The general belief, echoed by the media, was that Paperchase was seemingly edging towards going into administration, but other solutions are being explored.
The retailer, which had been trading from 173 stores and concessions, filed the Notice of Intent (NOI) in early January which saw accountancy firm PwC in the frame to establish a restructuring of the business.
“This isn’t the end of Paperchase, but it gives 10 working days of breathing space to find the best way forward for a sustainable business,” Will told PG Buzz at the time. (https://www.pgbuzz.net/sad-time-as-paperchase-edges-closer-to-administration/)
Discussions are underway with Paperchase’s greeting card suppliers concerning the outstanding amounts owed.
Top: Paperchase’s HQ and flagship store on London’s Tottenham Court Road. The retailer’s 50+ years of heritage has not been enough to protect it from what’s happening now.
