Owners of Barnes and Noble, an American bookseller, revealed it is acquiring Chicago-based Paper Source. Hedge fund Elliott Investment Management’s purchase will provide Paper Source with the necessary capital to surface from Chapter 11 bankruptcy.
Barnes & Noble CEO James Daunt is prepared to lead the two companies. Despite both companies set to function separately, partnerships are possible.
“With Paper Source’s management team, we will support and accelerate the brand’s strategic growth initiatives. Alongside this, the opportunities for Paper Source to work with Barnes & Noble are tremendously exciting for both businesses,” Daunt said in a press release.
According to the bankruptcy court records, the purchase was made for over USD91.5 Million, including USD40 Million in cash and the remaining USD51.5 Million in loans.
Paper Source intends to run 130 stores within the U.S. on top of its website and wholesale division, Waste Not Paper by Paper Source.
“All of us at Paper Source are delighted with Elliott’s investment in the brand and look forward to working with them, and with James and the team at Barnes & Noble. I am so grateful for the community who have supported Paper Source through both the pandemic and the Chapter 11 process – our amazing teams, our incredibly loyal customers, landlords, and our partner and vendor community,” Paper Source CEO Winnie Park said in the news release.
The sale is pending upon the bankruptcy court’s approval and a hearing is scheduled for Thursday in the U.S. Bankruptcy Court for the Eastern District of Virginia.