Paperchase has received the approval from its creditors (which includes many card publishers) for its CVA (Creditors Voluntary Arrangement). For the proposal to go through it had to be accepted by at least 75% of creditors.
Timothy Melgund, deputy chairman of Paperchase (pictured above) described the successful outcome of the creditors’ meeting (that took place last Friday, March 22) as “very good news”.
The meeting was attended by around 50 people, a mix of landlords, trade suppliers and service providers.
“I think that most were happy with the result!! Phew…” Timothy told PG Buzz.
“That’s that bit over with. Now we to wait for a further 28 days of the Challenge Period during which anyone can challenge the result. Hopefully no one will…not sure on what basis they could launch an effective challenge really…and then the CVA comes into effect,” he explained.
The agreement signals a rent reduction for Paperchase on some of stores, other stores will move to rental costs tied to turnover while a small number of its shops are to close.
Mindful of how unsettling this interim period has been for the many card publishers who supply Paperchase, Timothy gave his assurance that with the CVA approved the retailer “can continue paying to terms”. He also said that a top priority of to “start rebuilding trust and trading relationships with our valued partners. They have been very supportive, which is really appreciated, and it makes you realise how lucky we are to have such strong relationships in the trade.”
With less than a week to go before Mother’s Day, Timothy said that sales in Paperchase are looking positive. “It’s been building nicely to what I am sure will be a frantically busy final few days. Here’s hoping so!” he added.