// Paperchase is on the brink of collapsing amid reports that the business is in talks to secure a pre-pack administration deal
// It is unclear how many stores and jobs might be put at risk by another administration process
Paperchase could reportedly be set to collapse and appoint administrators as soon as today, Sky News reports.
The stationary retailer could appoint insolvency practitioners from Begbies Traynor on Tuesday as “insiders” told the news outlet that the sale of the business is now focused on a pre-pack administration deal.
It is believed that Paperchase shareholders are still in discussions with one potential buyer to secure a deal.
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The business called in administrators earlier this month in a race to find a rescue buyer just months after its latest change of ownership.
It is unclear how many stores and jobs could potentially be put at risk by another administration process.
There are currently 106 Paperchase stores in the UK and Ireland, employing 820 staff.
This is the second time in two years that the retailer, which specialises in gifts and stationery, has been on the brink of administration with the first notice to appoint administrators having been made back in January 2021.
A spokesperson from Paperchase said: “The directors of Aspen Phoenix NewCo, which trades as Paperchase, confirm that following interest from a number of parties during the sale process, no decision has yet been taken on the future of the company.”
“Paperchase stores and the website will continue to trade as normal during this period. We can’t comment further until the process has concluded.”
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