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The Paper Store
About the Company
The Paper Store started fifty-five years ago selling newspapers, magazines, and gift cards. Over the years the company grew to become the largest specialty gift retail chain in the Northeast with 86 locations in seven states.
has been acquired by
through a Chapter 11 Section 363 Sale Process
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Situation
Facing a significant decline in store traffic as well as numerous operational challenges, as a result of the COVID – 19 pandemic, the company missed sales targets and accumulated a large amount of unsold inventory. Unable to service its debt obligations, and with lender negotiations proving unsuccessful, the company filed for Chapter 11 bankruptcy to facilitate a going concern sale.
Engagement
Through the CRO role, G2 developed and executed liquidity management tactics to maximize strategic options as well as managing transactional and bankruptcy proceeding timelines. Focused on long term value maximization, G2 supported the sale process which was facilitated by SSG, leading to efficient and expeditious transaction execution.
Outcome
As CRO, G2 operated the Company throughout the bankruptcy proceedings, and structured a tailored transaction process resulting in the signing of an asset purchase agreement and eventual Section 363 going concern sale, plus the assumption of certain liabilities. Through this outcome, G2 was able to preserve nearly 2,000 jobs across the TPS organization. The successful and strategic execution of the engagement created significant value for junior creditors in the terms of certain assumed liabilities.
Deal Team
Sub-Sector
- Consumer Retail
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