Dive Brief:
Paper Source named Elliott Investment Management as the successful bidder in a process for the specialty retailer to sell itself in Chapter 11.
The deal includes $40 million in cash, plus additional cash for incremental financing taken on under Paper Source s debtor-in-possession facility, as well as assumed first-lien debt totaling $51.6 million, according to court papers.
Elliott also owns Barnes & Noble, which the investment firm acquired in 2019, and the U.K.-based book chain Waterstones. Paper Source listed an affiliate of private equity and investment firm Apollo as a backup bidder.
Dive Insight:
Susan Lindstrom founded Paper Source in 1983 as a single store in Chicago to bring handcrafted paper goods from around the world to U.S. consumers. Lindstrom grew the retailer to 27 stores by 2007 before selling a majority stake to private equity firm Brentwood Associates, after which the retailer s expansion accelerated.