bankruptcy

Barnes & Noble Owner Will Purchase Paper Source from Bankruptcy

But Barnes & Noble is still mid-turnaround...
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Francis Scialabba

· less than 3 min read

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What kind of card do you give a newly acquired card store? Barnes & Noble owner Elliott Investment Management will buy Paper Source, according to a press release, in a deal that will cover its exit from Chapter 11 bankruptcy.

The prologue: A year without wedding or grad party invites, coupled with pandemic store closures, pushed Paper Source into a bankruptcy filing this spring. Paper Source also missed payments for several vendors post-filing, some of whom told Retail Brew that the mistreatment irreparably damaged their businesses.

The next chapter: Under Elliott’s ownership, Paper Source will continue operating its ~130 stores along with wholesale and online channels. Paper Source will operate independently from Barnes & Noble...but joint CEO James Daunt hinted the two retailers could partner down the line.

The spoiler alert: New ownership may not protect Paper Source from further paper cuts—just look at its new sibling. Elliott said Barnes & Noble has maintained a “strong” performance over the past year, but Daunt’s overhaul plan is still a work in progress: Sales at the bookstore were expected to fall as much as 20% in 2020. — HL

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