This ad will be closed automatically in X seconds.

Paperchase Considers A CVA

The industry is reeling from the shock that Paperchase, which sells gifts as well as greeting cards, has called in KPMG to explore a potential CVA (Creditors Voluntary Arrangement) as one of the options for the business.

Timothy Melgund, deputy chairman of Paperchase, told GiftsandHome: “This is not an enjoyable time, but there is an inevitability given what is happening in the UK retail scene, with the general drop in footfall. Our ecommerce and internationally based businesses continue to perform strongly but, as many will know, UK retail is severely challenged at present for a whole host of reasons.”

Above: Timothy Melgund, deputy chairman of Paperchase.
Above: Timothy Melgund, deputy chairman of Paperchase.

He stressed that the retailer’s financial plight was not in any way a reflection of the nation falling out of love with greeting cards. “Far from it. Greeting cards are continuing to sell fantastically well with sales consistently outperforming footfall.”

Timothy gave assurances that Paperchase would “continue to pay suppliers to terms” and that they should continue to supply.

While the drop in general high street footfall is being cited as the main reason for the retailer’s situation, Timothy said that “the death of the high street is greatly exaggerated. There are many markets where footfall is holding up well, most notably where we have shops in railway stations.”

It was The Telegraph who broke the news of KPMG’s appointment (in its January 16 edition and online platform) to come in and explore options for the retailer, claiming that the accountancy firm was to draw up a store closure plan.

Timothy sad that at this stage he had “no idea if any or how many shops would be closed.”

Paperchase currently trades from 145 UK stores as well as 30 from overseas.

The Telegraph, and other media, picking up on the story highlighted how Paperchase’s latest accounts, that were filed at Companies House late last year, showed that the retailer had reported a pre-tax loss of £6.3 million for its year ending 3 February 2018.

 

Top: Paperchase is currently exploring the possibility of a CVA.

MORE NEWS
HomeGift
 
Visitor registration is open now...
KateWinch_GiftAwards
 
Candlelight’s head of sales, Kate Winch, says that the company, “sponsors The Greats each year because we truly value the independent retailers who are the backbone of our industry”...
Amore.
 
Co-owner Pete Whiteman looks backwards and forwards over the past decade...
Dunelm
 
“We remain very mindful of the wider backdrop and the impact of increased uncertainty on customer sentiment”...
Shoplifter
 
The vast majority of incidents occurred during opening hours, with thefts ranging from opportunistic to organised...
GA_SF
 
The Gift Awards are a reminder of what makes this industry so special, says Soraya Gadelrab, event director of Spring & Autumn Fair, who tells GiftsandHome.net why Spring Fair and Autumn Fair are once again supporting the Awards as headline sponsors...
Get the latest news sent to your inbox
Subscribe to our daily newsletter

The list doesn't exist! Make sure you have imported the list on the 'Manage List Forms' page.