Paperchase has drafted in advisers as the chain mulls launching a company voluntary arrangement (CVA) to streamline its store portfolio.

The stationery and gift card specialist has hired KPMG to draw up the store closure plans, according to The Daily Telegraph.

The CVA would allow Paperchase to pull out of a number of high street locations in towns and cities across the country continue to be impacted by declining footfall.

Paperchase currently operates around 130 UK stores and a further 30 in Europe and the Middle East, employing 2,000 staff.

It also operates a number of concessions within Next stores.

In its last full-year figures, covering the 53 weeks to February 3, 2018, Paperchase suffered a 50% slump in EBITDA to £4.5m, despite a 5.6% uptick in total sales to £141.2m.

Paperchase boss Duncan Gibson told Retail Week at the time of the results last October that the decline in profitability as driven by the “occupancy costs, currency headwinds and footfall declines” that have impacted the wider UK retail sector.