The retailer originally announced the CVA proposal on 4 March, and at the time said some 45 sites would “largely remain unchanged”, whilst turnover rents would be proposed at 70 sites, with a “varying guaranteed minimum base rents”, ranging from 35% to 80%.
Additionally, a total of 28 stores would also see a 50% rent reduction for three months, following which there will be either a rent-free period or a closure and exit.
KPMG said the CVA gives the company the “ability to rationalise its store portfolio” by exiting stores that are unprofitable, secure rent reductions where stores are over-rented and implement turnover rents to reflect the “highly seasonal nature of the business”.
Will Wright, restructuring partner at KPMG and joint supervisor of the CVA, said: “The engagement and buy-in of all stakeholders throughout this process has been vitally important in putting together an innovative CVA proposal which, following today’s approval, will allow Paperchase to move forward with a financial and operational restructuring plans.
“Today’s vote saw a majority of all voting creditors choosing to approve the CVA, surpassing the 75% total required in order to pass the resolution.”