The plight of Paperchase is a blistering hot topic of conversation at the Spring Fair (the exhibition runs until Thursday 7 at the NEC) among card publishers, retailers and suppliers alike, no decision has yet been made as to whether or when the mooted CVA will go ahead. The decision is understood to be imminent with many believing that yesterday (February 4) was a deadline for landlords and creditors to confirm whether they would support a CVA proposal.
With Paperchase being such an important retailer in our sector, not surprisingly there have been considerable jitters, especially as false rumours were circling last week that it had gone into receivership, which it had not.
A source of ‘Paperchase is in administration’ panics was property agents Green Partners who, acting on behalf on one landlord, sent out emails to potential tenants offering up the retailer’s sites in Chichester, Colchester, Exeter, Guildford, Hereford, Sheffield, Soho (London) and Windsor making the inaccurate statement that the multiple was undergoing an ‘administration process’. Green Partners however did later send a retraction putting the record straight that Paperchase is not in administration.
Timothy Melgund, deputy chairman of Paperchase said “Everyone is jumping the gun a bit,” with no decision made as to how many of its shops are likely to close as a result.
“If it is decided that we do pursue a CVA then that will swing into action in the weeks to come. Until that process is then complete it is nigh-on impossible to gauge how many shops might close. Honestly,” Timothy told PG Buzz.
Of the retailer’s plight, he stressed: “Our position is that the market is changing and we must keep changing our model too in order to continue being successful, both for our suppliers and the business.”
Top: The waiting continues, with no confirmation of how many Paperchase stores will close.
