A MAJOR high street retailer is “lining up administrators” as bosses race to save the chain.
Paperchase has filed a notice of intention to appoint an administrator to handle a potential insolvency, according to Sky News.
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The retailer is hoping to find a deal that means the chain will be saved.
It comes after the brand was put up for sale just four months after it changed ownership.
Paperchase has around 100 stores in the UK, but the move does not mean that all branches will close.
The retailer previously secured a rescue deal in 2021, which saved around 1,000 jobs and the majority of stores after it fell into administration.
More brands collapsed last year after losing the same battle “many retailers” had been fighting amid the Covid pandemic.
From the Scottish clothing brand M&Co to wellies store Joules, a number of familiar brands went bust in 2022.
Here, The Sun has put together a full list of retailers that closed last year.
Major burger chain Byron Burger also recently fell into administration and is set to close nine restaurants immediately.
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Further popular chains including Las Iguanas, Cafe Rouge and Bella Italia also fell victim to the pandemic.
The ASK Italian and Zizzi owner Azzurri Group also closed 75 of its restaurants with 1,200 job losses after collapsing into insolvency.
In December 2022, pub chain Wetherspoons announced it would be closing a total of 39 pubs after being hit by soaring inflation.
What does going into administration mean?
When a company enters administration, all control is passed to an appointed administrator – who has to be a licensed insolvency practitioner.
Their goal is to leverage the company’s assets and business to repay creditors.
Once the administrator has taken over, a moratorium is placed around the company and stops all legal actions.
After the administrator takes over, there isn’t much that can be done to reverse the process.
How does administration work?
The administrator will write to your creditors and Companies House to say they’ve been appointed.
They will try to stop the company being liquidated but if they can’t, the administrator will pay as much of a company’s debts as possible from the assets.
The administrator has eight weeks to write a statement explaining what they plan to do.
This must be sent to creditors, employees and Companies House and invites them to approve or amend the plans at a meeting.
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