Another popular Milton Keynes city centre shop faces collapse as it files administrators notice

Paperchase had undergone a financial restructuring but says its recovery plan was thwarted by the effects of lockdown last year.

Today's notice gives the company an initial 10 working days’ protection from creditors.s.

A company spokesman said: "The cumulative effects of lockdown 1.0, lockdown 2.0 - at the start of the Christmas shopping period - and now the current restrictions have put unbearable strain on retail businesses across the country.""

He added: "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."

Paperchase was hit by a tidal wave of complaints last month after it was accused a selling a Christmas card that 'mocked children in care'.

The card depicted a mother on the phone near a child who has spilt some milk, saying “Is this the orphanage? Right, I want a f****ing refund.”

The company removed the offending cards from all its shops and made an apology,

A spokesperson said: “We've immediately removed it from sale on our website and have instructed all stores to remove it from display. It is never our intention to be insensitive; we appreciate that on this occasion the image copy are, for which we apologise unreservedly.”