Private equity-owned stationary and gifts retailer Paper Source Inc. filed for bankruptcy, planning to permanently close some stores and sell itself to an affiliate of asset manager Apollo Global Management Inc. in exchange for debt relief, subject to better offers, WSJ Pro Bankruptcy reported. Chicago-based Paper Source filed for chapter 11 protection Tuesday in the U.S. Bankruptcy Court in Richmond, Va., becoming the latest retail chain pushed into bankruptcy as a result of the COVID-19 pandemic. Paper Source said its business was strong and growing until it was forced to temporarily close all of its nearly 160 stores last March in response to COVID-19. Revenue then dropped from canceled weddings and lost sales during the Mother’s Day and Easter holidays. The company closed stores weeks after Paper Source acquired additional locations from a competitor, Papyrus Inc., which itself was in chapter 11 at the time.
