Paperchase confirms sale talks after reports administrators lined up

Paperchase has said it is in talks with potential buyers amid reports that the high street retailer is lining up administrators.

The stationery chain confirmed it has hired advisers from Begbies Traynor Group (BTG) and PwC to assess options for the future of the company.

It came after Sky News reported that Begbies Traynor has been put on standby to handle a potential insolvency.

It is understood the company could be bought through a pre-pack administration.

However, Paperchase stressed it is still considering a solvent sale as a going concern and has had interest from a number of possible suitors.

A spokesman for Paperchase said: “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.”

The potential sale comes only four months after the retailer was bought by retail veteran Steve Curtis, who has previously backed Jigsaw and Tie Rack.

Paperchase also previously fell into administration two years ago, with the closure of 37 stores.