Paperchase stores in Suffolk and Essex face the threat of closure
PUBLISHED: 18:02 29 January 2019
Paperchase has become the latest high street retailer to make moves towards closing down some of its stores.
The stationers employs 2,000 people across the UK and has stores in Ipswich, Bury Saint Edmunds and Colchester, which could now be at risk.
Paperchase, which is owned by private equity firm Primary Capital, is considering implementing a company voluntary arrangement (CVA), an insolvency process used to close stores and cut rents.
According to The Times newspaper, the restructuring proposal states that it wants to close five stores, with a further 23 stores earmarked for potential closure unless it can secure a 50% rent reduction.
Paperchase has also proposed that in the case of a further 74 stores, landlords accept a new rent linked to turnover.
Only 41 stores of its 145 branches in the UK will be unaffected.
Paperchase is a chain of stationers which was started by two art students in the UK in 1968, and now has branches in Europe, the US and the UAE.