PAPERCHASE is reportedly on the brink of administration after the coronavirus crisis hammered the UK’s high streets over Christmas.
A collapse of the stationary chain would put 1,500 jobs and 145 stores at risk, reports The Telegraph.
Paperchase is said to have filed a notice to appoint administrators, with accountancy giant PwC lined up to handle the process.
The retailer earns 40% of its sales in November and December, but lockdown measures forced it to shut scores of shops over the festive period.
Given Paperchase is classed as a non-essential retailer, all shops in Tier 4 areas in England were ordered to close from various dates in December.
And following Boris Johnson’s lockdown announcement last night, all Paperchase stores in England will now remain closed.
What are my redundancy rights?
BEFORE making you unemployed, your employer should still carry out a fair redundancy process.
You are entitled to be consulted on the redundancy lay-off first and to receive a statutory redundancy payment, as long as you’ve been working somewhere for at least two years.
How much you’re entitled to depends on your age and length of service, although this is capped at 20 years. You’ll get:
- Half a week’s pay for each full year you were under 22,
- One week’s pay for each full year you were 22 or older, but under 41,
- One and half week’s pay for each full year you were 41 or older.
Sadly, you won’t be entitled to a payout if you’ve been working for your employer for fewer than two years.
There should be a period of collective consultation as well as time for individual ones if your employer wants to make 20 or more employees redundant within 90 days or each other.
You are also entitled to appeal the decision by claiming unfair dismissal within three months of being let go.
Retail sales fell 3.8% in November, according to the Office for National Statistics.
Meanwhile, separate data from ShopperTrak showed high street footfall dropped 40% on the last Saturday before Christmas.
The reports come as Paperchase pushed through a company voluntary arrangement (CVA) in March, which is a rescue deal designed to ease costs and debts.
A spokesman for Paperchase told The Telegraph restrictions before Christmas had put “unbearable strain on retail businesses across the country”.
They added: “Paperchase is not immune despite our strong online trading.
“Out of lockdown we’ve traded well, but as the country faces further restrictions for some months to come, we have to find a sustainable future for Paperchase.
“We are working hard to find that solution and this notice of intention is a necessary part of this work.
“This is not the situation we wanted to be in. Our team has been fantastic throughout this year and we cannot thank them enough for their support.”
The Sun has contacted Paperchase for comment.
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