// Paperchase puts Begbies Traynor on standby as it scrambles to secure a rescue deal, Sky News reports
// The stationary retailer was put up for sale last week just four months after it was snapped up by retail entrepreneur Steve Curtis
Paperchase has put administrators on standby as it rushes to secure a rescue deal.
The stationery retailer has brought in Begbies Traynor to manage any potential insolvency, Sky News reported.
City sources said the move was “sensible contingency planning” for the retailer and that a pre-pack administration was increasingly likely.
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Last week, Paperchase was put up for sale just four months after retail entrepreneur Steve Curtis snapped it up. PwC has been hired to handle the sale.
Paperchase has had a tumultous two years. In early 2021, the retailer was rescued in a pre-pack deal led by a lender connected to private equity firm Permira.
The deal saved around 1,000 jobs and around 90 of its 125 stores. Permira Credit invested in the retailer’s digital offer and new shop openings during its ownership.
When Curtis took over the chain last summer he aimed to add 50 more stores to its porfolio, despite the challenging economic backdrop.
It is unclear how many Paperchase stores and jobs might be put at risk by another administration process.
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