Chicago-based omnichannel retailer Paper Source said Tuesday it would accept a stalking horse bid from a syndicate of lenders led by Apollo-backed MidCap Financial to purchase substantially all of its assets. To implement the proposed sale, the company voluntarily commenced Chapter 11 cases in the federal courts for the Eastern District of Virginia.
“We are very pleased to have the full support of our lenders led by MidCap Financial,” said Winnie Park, CEO of Paper Source. “The COVID-19 pandemic presented real challenges to our stores business, but this sale will help us to emerge stronger.”
All Paper Source stores will remain open across the country, although the company reportedly plans to close 11 of its 158 brick-and-mortar locations. The company, which sells cards, paper goods and gifts, acquired 30 store leases from rival Papyrus last year after Papyrus’ parent company declared bankruptcy.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism.
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