Paperchase has reportedly lined up administrators Begbies Traynor (AIM:BEG) in the event a search for new investors proves unsuccessful.
It comes just four months after a consortium headed by Steve Curtis, a retail investor involved with Jigsaw and Tie Rack, and industry advisory firm Retail Realisation purchased the stationery retailer.
Plans either to sell or fold were drawn up last week, according to news sources.
In January 2021, Paperchase was sold to Aspen Phoenix NewCo - a subsidiary of Permira Credit- following the appointment of administrators at a time when many retailers collapsed due to the impact of Covid.
Permira Credit improved the retailer’s financial performance over its tenure investing in digital offerings and opening new sites.
In August last year, the Curtis consortium fought off rivals such as Hilco to purchase Paperchase with revenue forecast to double by 2024- a source close to the company revealed.
Trading at 100 stores at the time of purchase, Curtis had planned to grow this to 150 and had opened concessions at retailers House of Fraser, Selfridges and Next.
It is currently unknown how many jobs or stores are at risk from its second recent administration, closures will likely be dependent on how much if any new money is raised.
Paperchase is the latest in a spate of failures among retailers including Joules, Made.com and Missguided.