Skip to main content

The Paper Store files for bankruptcy, citing pandemic

Paper Store storefront

The Paper Store is the latest retailer to file for Chapter 11 bankruptcy protection blaming the COVID-19 pandemic.

The Massachusetts-based specialty retailer, which operates a warehouse and 86 stationery and gift stores throughout the Northeast along with an e-commerce business, plans to look for a buyer while in bankruptcy. 

In court papers, Don Van der Wiel, a restructuring adviser to The Paper Store, stated that the company has been operating under “considerable strain” caused by the pandemic, which has had a severe impact on revenues. A group that includes one of the The Paper Store’s creditors has "expressed an interest" in making a stalking horse bid for the company that would set the baseline at an auction, according to the documents.

The Paper Store entered bankruptcy with $45 million in funded debt, $13.5 million in unpaid bills to vendors, and $3.7 million in unpaid rent for April, May and June, among other liabilities.

 

 

 

X
This ad will auto-close in 10 seconds