The Paper Store

Client Profile

The Paper Store (“TPS” or the “Company”) is the largest family-owned and operated specialty gifts retailer in the Northeast. Founded over 55 years ago as a small newsstand, TPS has expanded to include 87 retail stores throughout seven states with a growing e-commerce business

Situation

TPS was positioned to benefit from its years of investment in operations, expansion, and development of an omnichannel customer experience until the COVID-19 outbreak forced the Company to close all its retail locations in March 2020. The Company was able to re-open most locations, but the economic impact of the global pandemic had severely affected revenue, profit, and liquidity. TPS was forced to seek relief under Chapter 11 to preserve the value of the business.

Solution

SSG was retained in July 2020 with a short timeline to conduct a comprehensive sale process and avoid liquidation. TPS Group Holdings, LLC successfully negotiated a Stalking Horse Agreement to preserve the business as a going concern and provide the necessary liquidity to build inventory for the upcoming holiday season. SSG’s accelerated marketing process attracted significant interest despite several obstacles including the pandemic lockdown, the Company’s liquidity challenges and the global economic effects on the retail industry. After a prolonged virtual auction with several rounds of bidding, the Stalking Horse’s final bid proved to be the highest and best offer for the Company’s assets. SSG’s special situations expertise, significant experience in the retail industry and proven ability to close transactions quickly during the COVID-19 pandemic enabled The Paper Store to complete a complex and expedited transaction that maximized value for all stakeholders and saved thousands of jobs in the Northeast.