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Paperchase could be forced to sell up or close some of its shops.

The chain's bosses are in discussions over the future of the brand.

Paperchase , which is owned by private equity firm Primary Capital, operates a store in Grand Central, Birmingham.

It has been reported that the retailer has considered a potential company voluntary arrangement (CVA).

This would allow it to cut down on rent costs and close some locations.

Sky News said Paperchase will soon announce whether it will "pursue store closures and rent cuts under a CVA, or an alternative transaction such as a sale".

The retailer has 145 stores in the UK along with 75 department store concessions in the UK, Europe and North America, CornwallLive reported.

(Image: Manchester Evening News)

The company could join other high street retailers such as Birmingham-based Patisserie Valerie who have had to sell to keep their shops open.

The cake chain was recently bought out of administration by Irish private equity firm Causeway Capital Partners.

According to Sky News, Paperchase’s adviser KPMG was contacting potential buyers in January about a deal which could include a pre-pack administration.

KPMG also reportedly told potential bidders that Paperchase needs new investment to help make changes to its business model and close unsustainable shops.

Paperchase has been owned by private equity firm Primary Capital since 2011.

News of another possible high street casualty follows a grim 2018, with 70,000 jobs retail jobs lost last year, according to trade body the British Retail Consortium.

Paperchase has been contacted for a comment.