High street stationary chain Paperchase has secured more time in its race to avoid collapse, after the retailer was forced to line-up administrators due to the negative impact of coronavirus restrictions on sales.
The company has filed a second notice of intention to appoint an administrator, giving the firm an additional ten days to negotiate a deal.
City A.M. understands the firm is close to finalising an agreement.
PwC has been lined up to handle proceedings if the company is unable to find a solution to its financial woes.
Paperchase filed its first notice of intention to appoint administrators earlier this month, saying the third coronavirus lockdown had put an “unbearable strain” on the retail sector.
A spokesperson for the company said at the time that the notice of intention to appoint administrators would allow it to “find a sustainable future” for the business.
“Paperchase is not immune despite our strong online trading,” the spokesperson said.
“Out of lockdown we’ve traded well, but as the country faces further restrictions for some months to come, we have to find a sustainable future for Paperchase.
“We are working hard to find that solution and this NOI is a necessary part of this work. This is not the situation we wanted to be in. “
The card retailer, which has 173 stores and concessions, earns 40 per cent of its sales in November and December, but was forced to shutter branches across the country in the run-up to Christmas.