Stationery chain Paperchase is on the brink of going into administration after sales were hammered during coronavirus lockdowns.
The company, which has 127 stores and around 1,500 employees, confirmed it has filed a notice to appoint administrators from PwC to advise on its insolvency process.
Paperchase launched a Company Voluntary Arrangement (CVA) restructuring in March in an attempt to turn around its fortunes.
But this was heavily impacted by the pandemic and bosses said lockdown restrictions have put 'unbearable strain' on the business.
A Paperchase spokesman said: “The cumulative effects of lockdown 1.0, lockdown 2.0 – at the start of the Christmas shopping period – and now the current restrictions have put unbearable strain on retail businesses across the country.
“Paperchase is not immune despite our strong online trading.
“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 (Notice of Intent to appoint administrators) is a necessary part of this work. This is not the situation we wanted to be in.
“Our team has been fantastic throughout this year and we cannot thank them enough for their support.”
In Greater Manchester, the brand has shops in Manchester city centre, inside Next in the Manchester Arndale, in Selfridges and in Altrincham.
The news comes after a number of high street chains were lost last year during the pandemic.
Debenhams entered administration for the second time in 2020 and will disappear from the high street unless a last-minute rescue deal can be agreed.
Philip Green’s Arcadia also collapsed into administration as well as women’s fashion chain Bonmarche.
John Lewis will be closing nine of its stores next year and Oasis and Warehouse have closed all high street stores.
