Stationery chain Paperchase is reported to have lined up administrators amid a race to find new backers.
Sky News said that the retailer has put Begbies Traynor, the professional services firm, on standby to handle a potential insolvency.
City sources said that Paperchase was continuing to seek a solvent rescue deal, and that Begbies’ prospective role represented “sensible contingency planning” in the event that one did not materialise.
Read the full article on the Sky News website
NAM Implications:
- Pro-active suppliers will have anticipated this possibility…
- …and taken appropriate action.
- In unprecedented times, always a wise precaution to check out the incremental sales required to cover losses when a customer goes into liquidation.
- i.e. Divide your sales to the customer by your net margin and multiply by 100 = the sales you need elsewhere to recover the loss.
