Add specialty gift retailer The Paper Store to the list of chains to file for Chapter 11 bankruptcy.
The company operates 86 stores in the northeastern U.S., including in Brookfield, Fairfield, Norwalk, Stamford and Stratford.
The Paper Store said it is looking to enter into a financial restructuring that will likely culminate in a sale of essentially all of its assets.
The retailer, based in Acton, Massachusetts, further said in a statement that it expects to continue operating its business as usual and has obtained an interim agreement from its lenders to use the cash generated by the business to provide liquidity to support ongoing operations during the process.
“After thoughtful consideration, we determined that a sale is the best path to maximize the value of the company’s leading specialty gift business for the benefit of our customers across the United States and other stakeholders,” said Don Van der Wiel, chief restructuring officer. “We are confident that this process will result in strong new ownership and anticipate that virtually all of the employees would be offered employment by new ownership.”
Before the COVID-19 pandemic, The Paper Store employed about 2,000 people. According to reports, as of yesterday it employed about 393 people full time and 554 part time across all its stores, having furloughed the remainder.
Other retailers that have recently filed for bankruptcy include Neiman Marcus, New York & Company, J. Crew, J.C. Penney, GNC, Chuck E. Cheese and Brooks Brothers.
