Stationery chain Paperchase is on the brink of administration after most of its stores were forced to close over the Christmas period.

The firm has filed a notice to appoint administrators, a move that will give it breathing space from its creditors while it works out a rescue plan.

The company has 127 stores and about 1,500 employees.

The second lockdown in November came at a crucial period for the firm, which makes a high proportion of sales then.

Paperchase on the brink of administration https://t.co/ZwZGDyr7Ja

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Just under half its sales, 40%, come from trade in November and December.

"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 said.

The company went through an insolvency process, known as a Company Voluntary Arrangement or CVA, in March last year to cut costs.

The chain now has 10 working days to find a solution.

A company spokesperson added: "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 [notice of administration] 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."