The Paper Store emerges from bankruptcy
The Acton-based business filed for Chapter 11 bankruptcy protection in July amid the financial fallout of COVID-19.
Related Links
The Paper Store, the Acton-based, family-run regional gift retailer, announced Wednesday the business has emerged from bankruptcy with assistance from the principals of the national retail real estate development firm WS Development.
In July, The Paper Store filed for Chapter 11 bankruptcy protection in U.S. District Court in Worcester, spurred by the financial blow of the coronavirus pandemic when health regulations forced the company to close its 86 stores for several months.
The move was intended to help save approximately 2,000 jobs, including at its Leominster warehouse that employs up to 200 workers seasonally and 50 people year-round, representatives said at the time.
The company had furloughed most of its employees over the pandemic, although about 393 full-time workers and 554 part-time employees were employed as of the date of the filing.
In a statement, the retailer said Wednesday it completed the voluntary Chapter 11 process in less than 50 days with “a group of strategic investors led by principals of WS Development,” which owns, develops, leases, and manages more than 95 properties spanning over 27 million square feet.
“The Paper Store could not have successfully navigated this process without the support of our dedicated, hardworking, and motivated staff, as well as principals of WS Development who made a meaningful commitment to our future and have allowed for our family-run business to continue serving our communities,” Tom Anderson, CEO and president of The Paper Store, said in the statement. “We also cannot express enough appreciation for our beloved customers – they have stuck by us for years and continued to do so during these uncertain times.”
As it worked through the legal process, the company was able to remain open and maintain its operations “to ensure ongoing obligations were met and services were uninterrupted,” the retailer said.
“We understand our customers have choices and we are encouraged and flattered that they choose The Paper Store,” Anderson said. “As our business grows in the coming months, it’s these same customers who will continue to help shape our brand.”
Get Boston.com's browser alerts:
Enable breaking news notifications straight to your internet browser.
To comment, please create a screen name in your profile
To comment, please verify your email address
Conversation
This discussion has ended. Please join elsewhere on Boston.com