High-street stationer Paperchase, which at the time of its August purchase had around 125 stores and concessions in the UK, has been put up for auction in the hands of PwC, as first reported by Sky News.

The firm has also retained management consultancy Begbies Traynor’s services in the case that a buyer is not found and the company has to go into liquidation.

Paperchase was in trouble even before the pandemic, entering into a creditors’ voluntary arrangement in 2019 - but in January 2021, the company collapsed into administration, and was sold in a pre-pack to a newly created company Aspen Phoenix Newco, which was backed by private equity firm Permira.

Just a year and a half later, in August 2022, Paperchase was bought by a consortium headed by retail investor Steve Curtis - best known for leading the fashion chain Jigsaw - and backed by Retail Realisation.

Curtis’ leadership, according to contemporary reports, hoped to achieve an ambitious growth plan of doubling the struggling firm’s revenue between 2021 and 2024.

The latest sale - by Curtis’ consortium to a new buyer - if completed, is expected before 20 January, according to Sky News.

The appointment of Begbies Traynor, however, has made a pre-pack seem increasingly likely, according to the city sources that spoke to the news site.

Ian Carrotte, owner of business intelligence firm ICSM credit, said he was concerned for the stationer’s suppliers.

He said: “It is sad to see the demise of Paperchase but our main concern is for the suppliers some of whom won’t get paid if they go into administration. 

“Our intelligence suggests there are some suppliers who are going to take a big hit if they go under. The fact is Paperchase’s problems set in long before [the] cost of living crisis came along.”