The Paper Source Store and its Easter exhibition will be shown closed on Boylston Street on April 8, 2020 in Boston, Massachusetts.
Maddie Meyer | Getty Images News | Getty Images
Elliott Investment Management, the owner of Barnes & Noble, announced Tuesday that it would take over gift and stationery retailer Paper Source.
The acquisition will provide Paper Source with the funds it needs to cope with Chapter 11 bankruptcy.
James Daunt, CEO of Barnes & Noble, will oversee both companies. While the two companies plan to operate independently, they hinted at possible future partnerships.
“With the Paper Source management team we will support and accelerate the brand’s strategic growth initiatives. In addition, the opportunities for Paper Source to partner with Barnes & Noble are extremely exciting for both companies,” Daunt said in a press release.
Paper Source plans to operate 130 stores in the US, as well as its website and wholesale Waste Not Paper by Paper Source.
The stationery chain went bankrupt on March 2, forced to close stores, cut jobs and cut executive pay. As with many retailers, Paper Source sales declined over the past year due to covid pandemic shutdowns, capacity constraints, and a wave of canceled weddings and events affecting invitation sales.
Paper Source had bought 30 new stores from its competitor Papyrus a few weeks before the March 2020 pandemic.
At the time of bankruptcy, Paper Source had 1,700 employees, 158 businesses, and debt and leases totaling $ 100 million, which, according to NBC News, cost $ 36 million annually.