Staionary Retailer Paper Source Files For Bankruptcy, Plans Sale
Jeremy Hill, Bloomberg News
(Bloomberg) Paper Source Inc., the stationary and craft supplies chain, filed for bankruptcy with plans to sell itself after Covid-19 hampered expansion plans.
The company intends to hand control of the business to an affiliate of MidCap Financial, a lending arm of Apollo Global Management, in exchange for debt forgiveness, court papers show. Paper Source owes about $103 million to lenders, including more than $55 million under a first-lien term loan.
Paper Source, which has 158 stores across the U.S., expanded its reach last March when it bought about 30 stores from rival chain Papyrus out of bankruptcy. Less than three weeks later, Paper Source temporarily shut down all of its own stores, which generated more than 80% of sales in 2019.