The owner of stationery and greeting card chain Paperchase is exploring a possible sale as its feels out landlords about a potential company voluntary arrangement (CVA).
According to Sky News, Paperchase’s adviser KPMG has been contacting potential buyers this week about a deal which could include a pre-pack administration.
The company is also sounding out its landlords about a CVA, which could lead to rent cuts and store closures.
The retailer has 145 UK stores, as well as 75 department store concessions in the UK, Europe and North America.
It is not clear which stores could face closure.
According to Sky, KPMG has told potential bidders that Paperchase needs new investment to help make changes to its business model and close unsustainable shops.
Paperchase has been owned by private equity firm Primary Capital since 2011.
Paperchase’s travails follow a grim 2018 on the High Street, with 70,000 jobs retail jobs lost last year, according to trade body the British Retail Consortium.
Paperchase and KPMG declined to comment.