Paperchase is on the brink of collapse as hopes of a solvent rescue deal have faded, reports Sky News.
The stationery retailer is said to be appointing insolvency practitioners from Begbies Traynor as soon as Tuesday (January 31), according to Sky News.
Shareholders of the embattled high street retailer have been in talks with prospective buyers for weeks, but the chain is now said to be focusing on securing a pre-pack deal.
It is unclear how many jobs or stores would be put at risk by another administration process, and a Paperchase spokesperson declined to comment, reports Sky News.
Paperchase, which trades from around 100 stores and employs more than 1,000 people, struggled during the pandemic and underwent a pre-pack administration in January 2021.
The retailer suffered massive losses during the 2020 festive season as its stores were forced to close during much of November and December when it would typically earn 40% of its annual sales.
In August last year, the chain was sold by Permira Credit to a consortium led by retail investor Steve Curtis, backed by Retail Realisation.
Curtis has previously chaired fashion retailer Jigsaw and led investments in chains such as Tie Rack, and beat competition including Hilco to strike a deal.
At the time of the purchase, Curtis was said to back management and embarked on a plan to expand Paperchase’s store estate to 150 shops.
- Don’t miss the best of the week – sign up to receive the Editor’s Choice every Friday
No comments yet