Will Paperchase be the next store to close?
PUBLISHED: 11:41 16 January 2019 | UPDATED: 13:19 16 January 2019
Paperchase is looking to close some of its UK stores.
The stationer has called in KMPG to advise on carrying out a company voluntary arrangement (CVA).
Paperchase has two outlets in Norwich’s city centre, a concession in House of Fraser – which is to close next month – and one in Castle Street.
CVAs have been the weapon of choice for many high street retailers looking to shed bricks-and-mortar stores, as the arrangement asks landlords to negotiate on rent prices or face losing the tenant.
Recent examples of closures brought about by CVAs include Jamie’s Italian, Byron Burger and Prezzo.
KPMG and Paperchase have been approached for comment.
The news comes after accounts filed to Companies House reveal a pre-tax loss at the retailer of £6.3m, with earnings dropping by 50% to £4.5m.
Paperchase also had its credit insurance reduced in September amid concerns about the retailer’s finances.
On top of this, parent company Primary Capital injected £4.5 million into Paperchase last year to repay debts.