Papyrus announces it's going out of business

Business

GOODLETTSVILLE, Tenn. — Papyrus, a mall staple that’s best known for selling stationery and upscale greeting cards, is going out of business.

Schurman Fine Paper, which owns the brand, filed for Chapter 11 bankruptcy Thursday in a Delaware court. The company is closing all 254 of its US and Canada stores. More than 1,000 employees will lose their jobs.

The company got its start in 1950 selling cards and imported stationery wholesale, before expanding into retail stores in 1973. The first Papyrus store opened in Berkeley, California, and eventually grew to 500 stores, including its American Greetings, Carlton Cards and Paper Destiny brands.

Papyrus blamed an overexpansion of stores, the downturn in brick-and-mortar shopping and its inability to fully recover from the 2008 financial crisis. Schurman tried rescuing the business by negotiating with landlords for more favorable rent and with its suppliers, but the company was unable to secure enough favorable deals to keep its stores open.

Shoppers are also increasingly sending emails or texts instead of buying cards. CVS and Walmart have reduced space for greeting cards in recent years.

Schurman chose to file for Chapter 11 bankruptcy protection because it will “provide the best process under the circumstances to maximize value for all of their stakeholders.”

Papyrus posted a comment on their Facebook page confirming the closure and thanking customers. The company did not respond to CNN Business’ requests for additional comment.

Papyrus, and its sister companies, are the latest retailer to stumble because of stricken malls. Last week, Bose said it was closing 100 stores signaling that 2020 will be another rough year. In 2019, US retailers announced 9,302 store closings, a 59% jump from 2018 and the highest number since Coresight Research began tracking the data in 2012.

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