U.K. law firm Browne Jacobson is acting on behalf of U.K. stationery company Paperchase as it files for administration, becoming the latest high street retailer to succumb to the effects of the coronavirus pandemic.
Paperchase faced difficulty even before the pandemic struck, and in early 2019 pushed ahead with its plans for a company voluntary agreement (CVA), with a view to “exiting stores that were unprofitable” according to a filing by auditors KPMG. U.S. heavyweight Kirkland & Ellis led the process.
However, the company has now filed a notice of intent to appoint administrators from PwC, according to a person close to the matter, with Browne Jacobson filing the legal notice on behalf of the retailer.
Paperchase operates 127 stores and employs around 1,500 people across the U.K.
Paperchase is just the latest company to seek out a rescue deal as the U.K.’s retail sector faces one of its most difficult periods ever as the government imposes consecutive lockdowns.
In November, Freshfields Bruckhaus Deringer and Big Four accountant Deloitte took on key roles for struggling fashion empire Arcadia, which faced potential collapse. Earlier in 2020, Ashurst advised U.K. restaurant chain Carluccio’s and rent-to-buy operator BrightHouse.
High street department store Debenhams turned to Freshfields in April in a bid to ward off collapse, but in late 2020 became one of the biggest retailers to shutter.
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