Elliott Investment Management, the owner of Barnes & Noble, said on Tuesday that it will acquire gift and stationery retailer Paper Source, CNBC.com reported. The acquisition will provide Paper Source with the funding it needs to emerge from chapter 11 bankruptcy. Barnes & Noble CEO James Daunt will oversee both companies. While the two businesses plan to operate independently, it hinted at possible partnerships in the future. Paper Source plans to operate 130 stores in the U.S. as well as its website and wholesale division, Waste Not Paper by Paper Source. The stationery chain filed for bankruptcy on March 2 and was forced to close stores, cut jobs and reduce the pay of senior managers. Like many retailers, Paper Source’s sales fell last year after Covid pandemic shutdowns, capacity restrictions, and a wave of canceled weddings and events hurt sales of invitations. Paper Source had purchased 30 new stores from its competitor Papyrus just weeks before the pandemic hit in March 2020. At the time of its bankruptcy filing, Paper Source had 1,700 employees, 158 stores, and $100 million in debt and leases that cost $36 million annually.
