The company has more than 120 shops across the UK and around 1,500 employees.
“The cumulative effects of lockdown one, lockdown two and now the current restrictions [in the UK] have put unbearable strain on retail businesses across the country,” a spokesperson said.
Pictured: Paperchase isn’t classed as an essential retailer and will close for the latest UK lockdown.
40% of the firm’s overall sales are usually made in November and December, however the Christmas lockdown meant sales fell in UK stores and online sales haven’t mitigated the loss.
To cut costs, Paperchase went through an insolvency process two years ago.
Although it’s unclear what the future holds for its branches in Jersey and Guernsey, the firm remains cautiously optimistic.
“We are working hard to find that solution and this NOI 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.”
It follows the Arcadia Group – which owns a number of labels on Jersey’s high street, including Topshop and Dorothy Perkins – going into administration at the end of 2020.