Paper Source Sets Sale to Apollo-Backed Lender in Bankruptcy
- Stationery chain plans to sell itself to Apollo lending unit
- Company bought 30 Papyrus stores from bankruptcy last year
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Paper Source Inc., the stationery and craft supplies chain, filed for bankruptcy with plans to sell itself after Covid-19 hampered expansion plans.
The company intends to hand control of the business to an affiliate of MidCap Financial, a lending arm of Apollo Global Management, in exchange for debt forgiveness, court papers show. Paper Source owes about $103 million to lenders, including more than $55 million under a first-lien term loan.