Paperchase are planning to close several stores as part of the companies restructuring, the retailer has become the latest victim of the UK high street crisis.
The high street retailer has launched a company voluntary arrangement (CVA), the company will be asking landlords to reduce rents and leave some locations.
KPMG has proposed a 50% rent reduction on 28 sites for at least three months, after which Paperchase could seek a rent-free period or close the stores.
In a statement, the company said: “While the majority of the 145 store estate will continue to trade as normal, Paperchase expects a small number of loss making stores will be closed as part of the process.
“Paperchase will work closely with employees affected by the closures to try and ensure their continued employment with the business.”
45 of the retailer’s stores are to remain unchanged.
Duncan Gibson, CEO of Paperchase said, “Paperchase is a much-loved brand, with a loyal customer base, and a fantastic design-led product offer. However, we need to reshape our store estate in order to ensure a long-term, sustainable future for the business.
“We have decided to take decisive action now to ensure we’re able to succeed in the future. We believe this is in the best interests of the company, our people, creditors and our customers.”