Paper Store LLC, a chain of 86 stationery and gift stores located in the Northeast, has filed for bankruptcy and plans to look for a buyer, the latest retailer to resort to chapter 11 as a result of the coronavirus pandemic, the Wall Street Journal reported. “In short, the filing of these chapter 11 cases has been caused by the COVID-19 crisis,” Chief Restructuring Officer Don Van der Wiel said in papers filed yesterday in U.S. Bankruptcy Court in Worcester, Mass. Paper Store sells ornaments, clothes, shoes, accessories and, since the COVID-19 pandemic, items such as face masks. The privately owned Acton, Mass.-based company said the pandemic caused temporary store closures, hurting revenue. It also said sales of sports items were weaker after the New England Patriots failed to advance in the National Football League playoffs. Although recently it has been allowed to reopen many of its stores, “the disruption and additional cost of trying to preserve the health and safety of nearly 2,000 full- and part-time employees has only made matters worse,” Van der Wiel said. Paper Store is expected to post revenue of $133 million this year, down from $167 million in 2019, he said. The company said its online sales are projected to grow to $18.8 million this year from $5.9 million last year. Sales of personal protective equipment are doing well it said.
