Paperchase has put administrators on standby as the stationary chain continues to search for a rescue deal.
The retailer has lined up the corporate restructuring firm Begbies Traynor as the administrator in the event of talks for a backer collapsing.
It is unclear how many stores and jobs could potentially be put at risk by another administration process.
There are currently 101 Paperchase stores in the UK and Ireland.
This is the second time within the last two years that the retailer has been on the brink of administration with the first notice to appoint administrators having been made in January 2021.
The near collapse of the chain was due to Covid-19 after it saw sales slide on the back of significantly lower footfall amid the coronavirus lockdown restrictions.
The accountancy firm PwC was appointed as the administrator at the time and Paperchase managed to secure a rescue deal with the newly-formed company Aspen Phoenix Newco, which was backed by Permira Debt Managers.
The pre-pack administration deal meant the stationary firm was able to save around 1,000 jobs when the newly formed company Aspen Phoenix Newco, which is backed by Permira Debt Managers, took control of the firm.
However, around 270 jobs were reported to be lost as the firm had to permanently close 27 of its sites.
At the time, the company employed 1,278 staff across its store portfolio, head office function and distribution centre.
Sky News first reported "city sources" said Paperchase was continuing to seek a solvent rescue deal, and Begbies' prospective role represented "sensible contingency planning" in the event one did not materialise.
These sources also said another pre-pack administration deal was likely.
Paperchase was taken over in August last year by the retail entrepreneur Steve Curtis who was backed by Retail Realisation, an industry advisory firm with which Curtis was affiliated with.
Sky News reported earlier this month that Paperchase had been again put up for sale again just a few months after the recent change in ownership.
It was reported that the sale, which was being handled by PWC, was set to be completed in the coming few weeks with some sources saying that an insolvency process may be required to "expedite" a transaction.
Paperchase told Mirror Money: "We confirm that we have retained BTG and PWC to advise Paperchase on strategic options, including the sale of the business as a going concern to new owners. Talks are continuing with a number of interested parties.
"All Paperchase stores and the website will continue to trade as normal during this period. We can’t comment further on this process until discussions with interested parties have been concluded."
