Source link Today, Paperchase Products Ltd, the popular stationery and gift chain, have fallen into administration, placing over 1,500 jobs under threat.
The company was founded in 1968 in London, and went on to become one of the leading retailers of gifts, stationery and cards across Europe with 240 outlets in the UK, Ireland and the Netherlands.
This latest news comes shortly after the closure of the company’s international outlets and US subsidiary, with 20 stores having already closed in the UK. Retailers Deutsche Bank, Next and WHSmith had already ended their supply of cards to Paperchale.
The chain had been riding high for several years, starting off with a few stores on London’s Oxford Street and expanding in the United Kingdom and abroad prior to the 2008 recession.
However, starting in 2017, it suffered a substantial drop in sales resulting from their aggressive expansion into the US, where stores had to be closed. As a result, the chain reported a four-fold increase in losses in 2018, from £1.3m to £8.3m.
The brand’s turbulent market success has attributed to the current downfall, as well as a growing market of digital rivals and an increasing cost of importing goods, in addition to higher business rates.
The business had been looking to rescue its finances, with billionaire Mike Ashley having stepped in to buy it in December last year. However, Ashley was unable to continue propping it up and the administrators are now in the process of figuring out what the future holds.
The future of the chain, its stores and its staff are currently unknown and information is expected to be released in the upcoming days.
Paperchase is a beloved and much-visited stationery and gift chain and the uncertainty of its future is sad news for all.
