A spokesperson confirmed to Retail Sector that a notice has now been filed to appoint administrators from PwC to oversee the administration.
It comes as reports show that during November and December, just under half of the retailer’s sales came from trade.
The company, which has around 1,500 employees, reported its announcement after the chancellor confirmed financial support for businesses this morning as further retail and hospitality sectors continued to experience losses.
A spokesperson told Retail Sector: “The cumulative effects of lockdown one, lockdown two – 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.”
They added: “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. Our team has been fantastic throughout this year and we cannot thank them enough for their support.”
The chain, which operates over 127 stores and 46 concessions, had previously undergone a company voluntary agreement (CVA) in March 2019 in an effort to reduce the business’ heavy costs.