Paperchase is reportedly on the brink of going into administration today.
The high street stationary store is expected to appoint insolvency practitioners from Begbies Traynor Group (BTG) imminently.
Discussions are still in place with several potential buyers for the company.
However, insiders told Sky News that the company’s assets will be sold immediately after it falls into administration.
The number of stores and jobs put at risk by the insolvency is not clear at this point.
Earlier this month, Paperchase hired advisers from BTG and PwC to assess options for the future of the company.
It came after the company was put up for sale four months following a change of ownership.
The stationary chain was taken over in August by retail investor Steve Curtis who has previously backed Jigsaw and Tie Rack.
Paperchase also previously fell into administration two years ago, with the closure of 37 stores in January 2021 as a consequence of the pandemic.
After the chain’s last insolvency, Paperchase was owned by Permira Credit.
The company had almost 1,300 employees and traded from more than 125 sites across the UK, including concessions at House of Fraser, Selfridges and many Next stores.
It currently has around 100 stores, with previous plans aiming to increase the number to 150.
The company is one of many businesses that took a hit during Covid-19, such as fast fashion firm Missguided and online furniture retailer Made.com.
Paperchase declined to comment.
