Paperchase is set to be rescued in a pre-pack deal led by a lender connected to private equity firm Permira.

The struggling greetings card and stationery retailer, which was reported to be appointing administrators earlier this month, could be sold to Permira Debt Managers as early as today, Sky News first reported.

The deal will save around 1,000 jobs with around 90 of the chain’s 125 stores purchased by the new owner.

An unconfirmed number of redundancies will be made following the permanent closure of Paperchase’s other stores.

PwC is understood to be administrator-in-waiting for the deal.

Paperchase has struggled during the pandemic with lockdown restrictions in November and December wiping out what would have been a crucial festive sales period.

The high street retailer has also competed against online players such as Moonpig, which recently launched an IPO off the back of lockdown success.

The deal contrasts those reported earlier this week to take high street favourites Debenhams and Topshop online-only through acquisition agreements with pureplay retailers Boohoo and Asos respectively.