Dive Brief: Card and gift retailer Paper Source has filed for Chapter 11 bankruptcy with a plan to sell itself and close at least 11 stores. The company, which runs 158 stores, has a stalking horse bid from current lenders led by MidCap Financial to buy the company and provide $16.5 million in financing. The stalking horse bid is valued at Paper Source's debt obligations, including $16 million for a debtor-in-possession facility and $72.8 million on a first lien facility, according to court papers. Dive Insight: Roughly a year ago, Paper Source was a beneficiary of the fall of a rival, the card and stationery store chain Papyrus, which liquidated in early 2020. At the time, Paper Source took over 30 of Papyrus' stores, expanding Paper Source's store fleet by more than 20%.