The Paper Store will emerge from Chapter 11 bankruptcy after less than two months. Retail-led real estate firm WS Development acquired the retailer, which will be added to its 95-location property portfolio.
The Paper Store continued operating uninterrupted during the proceedings and expects to seamlessly transition to its new ownership as it emerges from bankruptcy. The deal will preserve the jobs of more than 2,000 employees.
“The Paper Store could not have successfully navigated this process without the support of our dedicated, hardworking, and motivated staff, as well as principals of WS Development who made a meaningful commitment to our future and have allowed for our family-run business to continue serving our communities,” said Tom Anderson, CEO and President of The Paper Store in a statement.
This is not the first instance of a real estate company buying a distressed retailer. In recent months, Simon Property Group acquired two of its own tenants, Brooks Brothers and Lucky Brand, and is reportedly considering a bid for Macy’s.