Commenting on the news that Paperchase is using a CVA to negotiate rent reductions and restructure its store portfolio, potentially shuttering 28 stores, Zoe Mills, UK Retail Analyst at GlobalData, offers her view:

“Paperchase has been plagued by the growing presence of value retailers and general merchandisers in the market with the likes of B&M, Poundland and Flying Tiger Copenhagen all expanding their ranges and taking a more fun and design-led approach, while also undercutting on price.

“Paperchase must do more than cull a small number of stores from its portfolio of 145 after a poor profit performance in 2018, which saw its EBITDA fall 50.8% to £4.5m in FY2017/18. The premium specialist must reduce the number of SKUs to allow focus on its stationery proposition and reconnect with its core customer, to generate loyalty among shoppers who are typically trading down.”