Elliott Investment Management, owner of Barnes & Noble, is acquiring the assets and business operations of Paper Source Inc., allowing the stationery and gift retailer to emerge from Chapter 11. Paper Source will operate approximately 130 stores across the U.S., as well as Papersource.com and its wholesale division, Waste Not Paper by Paper Source. B&N CEO James Daunt will oversee both companies. (Daunt is also managing director of Waterstones, owned by Elliott Management Corp.)
"I look forward to working closely with everyone at Paper Source," Daunt said. "This is a wonderful brand, with a unique culture and community. With Paper Source's management team, we will support and accelerate the brand's strategic growth initiatives. Alongside this, the opportunities for Paper Source to work with Barnes & Noble are tremendously exciting for both businesses."
Winnie Park, CEO of Paper Source, commented: "All of us at Paper Source are delighted with Elliott's investment in the brand and look forward to working with them, and with James and the team at Barnes & Noble. I am so grateful for the community who have supported Paper Source through both the pandemic and the Chapter 11 process--our amazing teams, our incredibly loyal customers, landlords, and our partner and vendor community.”
Paul Best, portfolio manager and head of European private equity at Elliott, added: "As the country's leading specialty retailer of stationery, cards and gifts, we see tremendous future potential in Paper Source's business. We look forward to working closely with the management team to position the brand for continued growth coming out of the pandemic."