The board of PaperX.com has appointed a receiver after the firm failed to raise a second round of financing.


The firm blamed stagnant market conditions and a slow take-up of e-commerce for its plight.


Funds are understood to have reached a crucial point of no return, at which time the business was open to offers from the industry.


It is believed that two industry consortiums looked at the possibility of acquiring either all or part of the business of PaperX over the past few months, but with time a crucial factor in the deal, neither group pursued their interest.


One group was thought to have been led by CEPI members, involving around six mills and manufacturers, and another led by George Dean of Buhrmann, which comprised at least six major paper merchants.


PaperX has around 40 employees, although a number are understood to be on freelance contracts.