The Paper Store

Exclusive Financial Advisor

has been acquired by

through a Chapter 11 Section 363 Sale Process

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.

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.