Papyrus files for personal bankruptcy, closes all of its stores

• Stationary chain Papyrus filed for insolvency and validated it would close all of its stores throughout the United States and Canada on Thursday.
• The company is owned by The Schurman Retail Group, which likewise operates sibling shops Paper Destiny and American Greetings/Carlton Card. It has 254 shops in total.
• In the bankruptcy filing, it cited a duration of overexpansion during the 2008 economic downturn and a more recent “basic downtown” in the physical retail market as being some of the factors behind its problems.
• Go to Organisation Expert’s homepage for more stories.

Completion is nigh for well-known fixed chain Papyrus.

On Thursday, its parent company, The Schurman Retail Group, which also owns sis stores Paper Fate and American Greetings/Carlton Cards, declared bankruptcy and stated it would be closing all of its 254 shops throughout the US and Canada. Around 1,100 employees will be impacted by these closings.

Reports of its approaching store closings surfaced previously this month however news of its insolvency was initially reported by Cleveland.com on Thursday

Schurman Retail Group did not instantly respond to Company Expert’s ask for remark however in a statement shared with Cleveland.com, a spokesperson said that most of shops would shutter in the next four to 6 weeks.

Schurman Retail Group was set up in 1950 as an importer and wholesaler of greetings cards and stationery in the US. Throughout 20 years, it grew beyond the wholesale company to open its own places; the first Papyrus store opened in 1973 in Berkeley, California.

At its peak in 2009, the company had 500 stores throughout the US and Canada after it entered into a deal with American Greetings Corp that led to it acquiring the retailer’s shops across these 2 regions.

In the bankruptcy filing, it cited a duration of overexpansion during the 2007-2009 economic downturn and the reality that it was forced to recondition and close a great deal of underperforming shops that it got from American Greetings Corp in 2009, as the start of its issues. Ever since, a “general downtown” in the brick and mortar retail market has actually likewise taken its toll on sales.

The company currently has properties of $394 million and liabilities of $549 million. In the filing, it said that it has actually spent the previous two years addressing its liquidity concerns by working out for more beneficial terms with providers and leas with its landlords however eventually, it wasn’t enough.

” Following its assessment of all readily available alternatives, the Company figured out that declare Chapter 11 defense … is the best offered alternative to maximize worth for the Company and its stakeholders,” it noted in the filing.

You can find a copy of the filing here:

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