The high street stationery chain Paperchase is lining up administrators amid a race to find new backers.

Sky News has learnt that the retailer has put Begbies Traynor, the professional services firm, on standby to handle a potential insolvency.

City sources said that Paperchase was continuing to seek a solvent rescue deal, and that Begbies’ prospective role represented “sensible contingency planning” in the event that one did not materialise.

A further pre-pack administration was now increasingly likely, they added.

Earlier this month, Sky News revealed that Paperchase had been put up for sale just four months after its latest change of ownership.

The chain was taken over in August by Steve Curtis, an experienced retail investor who has been involved with Tie Rack and Jigsaw.

It is now being auctioned by PricewaterhouseCoopers (PwC), the accountancy firm.

High street sales: What major retailers’ Christmas results tell us about the economy

Tesco boss makes food inflation prediction as big retailers report Christmas progress

Encouraging high street numbers should be kept in perspective | Ian King

Retail Realisation, an industry advisory firm with which Mr Curtis and turnaround firm Rcapital are affiliated, was also involved in last summer’s deal.

Paperchase had previously been one of the numerous retail casualties of COVID-19, having undergone a pre-pack administration in January 2021.

It trades from about 100 stores, and Mr Curtis was said at the time of the most recent takeover to be backing an existing management plan to grow that number to approximately 150 in the coming years.

Permira Credit, the previous owner, had invested in Paperchase’s digital offering as well as new shop openings and executive recruitment since its brush with administration.

At the time of its last brush with insolvency, Paperchase employed nearly 1300 people, and traded from more than 125 sites across the UK.

Its outlets included concessions at House of Fraser, Selfridges and a number of Next stores.

It was unclear on Tuesday how many stores and jobs might be put at risk by another administration process.

The plan to grow the chain by 50% was a bold bet on the potential of the Paperchase brand and business model given the challenging economic backdrop.

Paperchase was one of dozens of prominent retailers which crashed into insolvency during the COVID-19 crisis, with other notable names including Debenhams and the Dorothy Perkins-to-Topshop empire, Arcadia Group.

A Paperchase spokesman declined to comment.

Related posts:

55 new cases of Indian variant found in UK in latest week Former F1 boss and privacy campaigner Max Mosley dies aged 81 Explosion that killed Lancashire toddler caused by cut gas pipe, say police England lose four wickets in final hour as Australia close in on Ashes victory Number of people in hospital with COVID in England hits highest level since March Retired Met officer charged over alleged rape 18 years ago British Sign Language to get legal status as part of bill backed by Strictly Come Dancing star Declan Donnelly’s older brother dies aged 55 Murderer who stabbed two women in face jailed for at least 41 years Woman claims Benjamin Mendy’s friend ‘started talking about God’ after sexually assaulting her Chaos among Tory MPs as Labour motion to force vote on fracking bill is defeated Flood warnings as heavy rain and strong winds on the way