Paperchase puts administrators on standby – but ‘interested parties’ in talks

Stationery outfit Paperchase has put administrators on standby as it scrambles to find new financial backers.

Sky News’ Mark Kleinman has reported that Begbies Traynor has been lined up to handle any potential insolvency.

The firm has been bruised and battered by the pandemic and changes to the high street, though City sources told Kleinman that there was no guarantee insolvency might follow.

Sources told Kleinman – who also writes a City A.M. column – that the move was “sensible contingency planning” in difficult times.

The firm has been at the heart of a number of recent headlines, with the firm securing a rescue deal as recently as January 2021.

It was then taken over in August of last year by experienced retail investor Steve Curtis.

But Curtis himself then put the firm up for sale just four months later, a process being managed by PwC.

A spokesman for Paperchase said this afternoon: “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.”