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Paper Source

Paper Source is an American specialty retail chain specializing in paper-based products, including stationery, greeting cards, gift wrap, wedding invitations, envelopes, and crafting supplies, with an emphasis on creative and personalized items.^[1] Founded in 1983 by Susan Lindstrom in Chicago, Illinois, as a showroom for handcrafted papers from around the world, the company has grown into a nationwide retailer focused on fostering creativity and community among makers and artists.^[1] Over the decades, Paper Source expanded through strategic acquisitions and organic growth, reaching 165 stores across the United States by early 2020 after acquiring 30 locations from the bankrupt Papyrus retailer.^[2] In 2013, the company was acquired by Investcorp from Brentwood Associates, marking a significant investment in its expansion.^[3] Facing challenges from the COVID-19 pandemic, Paper Source filed for Chapter 11 bankruptcy in March 2021 and was subsequently acquired by Elliott Investment Management, the parent company of Barnes & Noble, in a deal that facilitated its restructuring and emergence from bankruptcy later that year.^[4] By 2025, the retailer operates 117 stores in 28 states, with its headquarters still in Chicago, while maintaining an online presence for broader accessibility.^[1] Beyond its product offerings, which also include non-paper items like plush toys and candles to complement creative projects, Paper Source emphasizes sustainability through initiatives such as using 100% recycled content in select papers and sourcing from mills that utilize renewable energy and responsible forestry practices.^[1] The company's values center on social responsibility, premium quality, and supporting domestic paper production, positioning it as a key player in the artisanal and eco-conscious stationery market.^[1]

History

Founding and early years

Paper Source was founded in 1983 by Susan Lindstrom in Chicago, Illinois, initially as an elegant showroom dedicated to handcrafted papers imported from around the world. Inspired by a trip to Japan where she attended a paper symposium and discovered fine handmade Japanese papers, Lindstrom began importing these artisanal products to sell through her existing framing business in Wilmette before opening the dedicated first store in Chicago's River North neighborhood.^[5]^[6]^[1] The early focus centered on fine art papers, stationery, and unique paper products sourced internationally from regions like Asia and Europe, targeting creative and artistic customers who valued craftsmanship and quality. Lindstrom curated collections of these items, including custom-colored papers and invitations, to foster a sense of inspiration and hands-on creativity. By the late 1980s, the original store had expanded to occupy all three floors of its location at 232 W. Chicago Ave., reflecting growing demand for these specialized goods.^[5]^[1]^[7] Initial store operations emphasized immersive in-store experiences, including the introduction of workshops and classes in the late 1980s and early 1990s, such as papermaking, note card decoration, and bookbinding, to engage customers directly with the materials. Expansion proceeded gradually within the Chicago area during the 1980s and 1990s, with Lindstrom soon opening a second location in the city shortly after the debut store. By the early 2000s, the product lines had broadened to include greeting cards and envelopes, complementing the core paper offerings while maintaining the emphasis on artistic utility. This organic growth phase culminated in approximately 21 stores prior to the 2007 private equity acquisition.^[5]^[8]^[5]

Private equity ownership period

In June 2007, Brentwood Associates acquired a majority stake in Paper Source, which operated 21 stores primarily in the Midwest at the time.^[9] The terms of the transaction were not publicly disclosed. Following the acquisition, Brentwood focused on national expansion by assembling a new senior management team led by CEO Sally Pofcher and prioritizing geographic growth through new store openings in underserved markets.^[10] During Brentwood's ownership, Paper Source significantly scaled its operations, increasing its store count from 21 locations in 2007 to 73 across 23 states by 2013, transitioning from a regional player to a national retailer.^[11] This expansion included entry into key markets such as the Northeast and West Coast, supported by strategies to enhance brand visibility and supply chain efficiency. Under continued private equity backing after Brentwood's exit, the company further grew to over 100 stores by the mid-2010s, reaching 106 locations nationwide in 2016.^[12] In September 2013, Brentwood sold Paper Source to Investcorp, an alternative investment firm, for an estimated 15 times EBITDA after a six-year holding period marked by substantial revenue and footprint growth; this exit was facilitated by a prior dividend recapitalization in May 2013.^[13] The transaction terms were not disclosed, but it provided Investcorp with opportunities to deepen domestic expansion and explore international avenues. Leadership continuity was maintained, with Sally Pofcher remaining as CEO to guide ongoing operations.^[14] In February 2020, Paper Source acquired 30 store locations from the bankrupt Papyrus chain, paying $575,000 for the sites along with their fixtures and equipment, which expanded its network and introduced greater product overlap in greeting cards and related stationery items.^[15] These stores, primarily in high-potential markets like New York and California, were rebranded and integrated into Paper Source's operations, boosting its total footprint to 165 locations. This private equity ownership period, spanning 2007 to 2021, culminated in the company's Chapter 11 bankruptcy filing in March 2021 amid pandemic-related challenges.^[16]

Bankruptcy and acquisition by Elliott Management

In early 2021, Paper Source faced severe financial distress exacerbated by the COVID-19 pandemic, which led to a sharp decline in retail sales as consumers reduced spending on non-essential items like stationery and gifts, resulting in store closures and layoffs. The company, which operated 158 stores, had already closed several stores and laid off hundreds of employees since the onset of the crisis in 2020, while struggling to secure additional capital from its private equity owner, Investcorp. Additionally, Paper Source owed millions to vendors, many of whom were small cardmakers left unpaid, prompting frustration and legal concerns during the restructuring process. On March 2, 2021, the retailer filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Virginia to reorganize its operations, rationalize its real estate footprint, and address its capital structure.^[17]^[18]^[19] The bankruptcy proceedings involved a court-supervised asset sale to maximize value for creditors, with Paper Source continuing operations as a debtor-in-possession. In May 2021, Elliott Investment Management, the hedge fund that also owns Barnes & Noble, emerged as the winning bidder in a competitive auction process, agreeing to acquire the company's assets for approximately $91.6 million, including $40 million in cash and $51.6 million in new financing. The deal, announced on May 11, received court approval on May 13, 2021, allowing Paper Source to exit bankruptcy and maintain its Chicago headquarters while integrating into Elliott's retail portfolio. This acquisition marked a strategic pivot for the retailer, providing financial backing from an investor experienced in bookstore and specialty retail turnarounds.^[20]^[4]^[21] Following the acquisition, Paper Source underwent immediate restructuring, retaining about 130 of its stores nationwide and significantly reducing its debt load to emerge leaner and more focused. The company closed additional underperforming locations during the process, streamlining its footprint to better align with post-pandemic consumer patterns. In June 2021, Jenica Myszkowski, who had served as the company's chief operating officer during the bankruptcy, was appointed CEO to lead the transition.^[22]^[23]

Post-acquisition developments

Following its acquisition by Elliott Management in 2021, Paper Source focused on stabilizing and enhancing its retail presence. By 2025, the company had streamlined its store network to 117 locations across 28 states, prioritizing high-traffic urban and suburban markets to support long-term viability.^[1] This reduction emphasized experiential retail elements, including in-store workshops, drop-in craft sessions, and special events designed to engage customers through hands-on activities like holiday card making and origami crafting.^[24]^[25] In February 2025, Paper Source announced the closure of its Forest Park warehouse in Illinois, effective by April, which resulted in 107 job cuts and prompted adjustments to its supply chain operations for greater efficiency.^[26]^[27] The decision aligned with broader cost-optimization efforts under Elliott's ownership, building on the prior integration of assets from the 2020 Papyrus store acquisition to consolidate distribution and reduce overhead.^[28] Paper Source reported annual revenue of approximately $357 million in recent years, reflecting steady performance amid e-commerce expansion, though specific online growth projections for 2025 were not publicly detailed.^[29] Strategically, the company advanced sustainability initiatives by sourcing paper from certified mills using post-consumer fiber and renewable materials, including its Eco-White line made from 100% recycled content and Stone Paper produced without bleach or trees.^[1] Additionally, partnerships for exclusive product lines, such as the 2025 Elements Collection collaboration with designer Jeremiah Brent, introduced limited-edition stationery and gifts to drive innovation and customer appeal.^[30]

Products and services

Stationery and paper goods

Paper Source's core stationery offerings center on handcrafted and fine papers sourced globally, a tradition rooted in founder Sue Lindstrom's travels to curate artisanal varieties since the company's inception in 1983.^[1] These include art papers, envelopes, and notebooks that form the foundational product lines, emphasizing premium materials such as Eco-White paper made from 100% recycled content with 30% post-consumer waste, stone paper produced without bleach, and Luxe or Savoy papers incorporating recycled fibers or cotton blends.^[1] While the majority of paper is domestically sourced from certified mills using sustainable forestry and renewable materials, the selection features exclusive solid color lines and specialty options like Shimmer, Stardream metallic finishes, and superfine art papers in various sizes for crafting and printing.^[1]^[31] The stationery category encompasses personalized notecards, journals, and planners designed for everyday use and self-expression. Notecards include custom thank-you options and announcements for events like births or weddings, often paired with embellishments such as stickers, washi tape, or wax seals on high-quality card stock.^[32] Journals feature modular "Build Your Own" formats allowing customization of covers and interiors, while planners offer 2025 monthly, weekly, and daily layouts with curated features like holidays and lifestyle elements to support organization.^[32] Envelopes complement these items with options for custom return addressing and exclusive designs created in-house in Chicago, drawing from collaborations with brands like Rifle Paper Co. and kate spade new york to ensure trendy, distinctive aesthetics.^[32] Wedding invitations and suites represent a key extension of Paper Source's paper expertise, providing fully customizable ensembles that enhance celebratory events. These suites typically include invitations, save-the-dates, information cards, menus, place cards, and thank-you notes, all coordinated in themes ranging from classic printmaking to modern patterns.^[33] Customers can personalize through in-house design tools, uploading photos or selecting from exclusive Paper Source prints, with options for fine paper liners, hand lettering, and matching accents to reflect personal styles.^[33] Built on the same commitment to quality materials, these products utilize superfine and specialty papers to create elegant, durable pieces that set the tone for weddings and related gatherings.^[33]^[1]

Gifts, party supplies, and custom offerings

Paper Source offers a diverse selection of gift items centered on presentation and occasion-specific curation, including unique wrapping paper, gift boxes, and themed sets. Wrapping paper options feature eco-friendly stone varieties that are water-resistant and reusable, handmade marble designs sourced from Nepal, and seasonal patterns for holidays such as Christmas, Hanukkah, birthdays, and weddings. Gift boxes and bags are available in multiple sizes and motifs, often bundled with tissue paper, satin ribbons, bows, and customizable tags to create polished presentations. Customers can utilize in-store gift wrapping services performed by trained experts for added convenience. In addition to paper-based items, Paper Source offers complementary non-paper products such as plush toys and candles to support creative projects and gifting.^[1]^[34] The retailer's party supplies emphasize event enhancement through invitations, decorations, and favors, with robust seasonal lines to support celebrations. Decorations include garlands like fluffy pom ball or leaf-and-pumpkin felt varieties, themed plates and napkins (e.g., harvest or football designs), and sustainable honeycomb elements such as pumpkins or backdrops. Invitations and favors feature treat bags, party crackers, and piñatas, while seasonal offerings like holiday card sets often include promotions such as buy-one-get-one 50% off on select boxed cards. These items cater to occasions from birthdays and housewarmings to festive holidays, promoting coordinated aesthetics.^[35] Custom printing services form a core of Paper Source's personalized offerings, enabling tailored invitations, announcements, and branding materials through in-store and virtual consultations. Experts assist with designs for wedding invitations, birth announcements, business cards, and party invites, using tools that allow customers to upload artwork, select fonts, colors, and layouts on superfine white or colored papers. Production typically takes three days with options for expedited shipping, and consultations ensure alignment with client visions for high-quality, event-specific results.^[36]^[37] To foster creativity in gifts and parties, Paper Source provides craft supplies and DIY kits that align with its paper-centric heritage, offering materials for hands-on projects. Examples include envelope template kits for custom packaging, turkey mask sets for Thanksgiving gatherings, and holiday-specific crafts like gingerbread house assemblies or fall pumpkin decorations, complete with pre-cut shapes and instructions suitable for all ages. These kits support personalization for favors, decorations, and gift accompaniments, encouraging users to craft unique items for occasions.^[38]

Operations

Retail stores and locations

Paper Source maintains a network of 117 retail stores across 28 U.S. states as of 2025, with its corporate headquarters situated in Chicago, Illinois.^[1] This footprint reflects a strategic focus on urban and suburban markets, emphasizing accessibility for customers seeking hands-on shopping experiences in stationery and gifts. Store designs prioritize an inviting atmosphere, featuring open layouts that facilitate easy browsing of artisanal papers, cards, and crafting supplies. Many locations include dedicated demo areas where shoppers can test products like stamps and custom invitations, fostering creativity and interaction. Select stores incorporate local art displays to connect with community aesthetics, blending national branding with regional influences.^[24]^[39] In April 2025, Paper Source closed its distribution warehouse in Forest Park, Illinois, resulting in the elimination of 107 jobs. This change affects the company's logistics operations supporting its retail and e-commerce channels.^[40] To enhance customer engagement, Paper Source hosts in-store events such as free workshops, including origami crafting sessions during holidays, and seasonal activities like drop-in craft nights. These initiatives, offered in various locations, aim to build community and increase foot traffic by providing hands-on learning opportunities.^[41]^[42] This retail infrastructure serves as a vital complement to the company's e-commerce efforts, enabling seamless omnichannel access for customers.^[1]

E-commerce and omnichannel strategy

Paper Source operates its e-commerce platform through papersource.com, which facilitates nationwide shipping to the contiguous United States for a wide range of stationery, gifts, and custom products. Standard shipping takes 3-6 business days, with free standard delivery available on orders exceeding $50 after discounts, excluding gift cards and store-only items; expedited options are also offered for faster delivery. The platform supports a 30-day return policy for unopened, saleable items, allowing customers to return via mail with a packing slip or in-store at Paper Source locations.^[43]^[44] To integrate digital and physical channels, Paper Source employs omnichannel features such as virtual workshops conducted via Zoom, which replicate the hands-on experience of in-store classes. These online events cover topics like holiday gift wrapping, junk journaling, and card making, enabling remote participation while promoting the same creative tools available in stores. This approach fosters community engagement across platforms, with sessions scheduled regularly to align with seasonal themes.^[41]^[25] The e-commerce site has expanded digitally with specialized offerings, including wedding invitation suites featuring exclusive prints, patterns, and custom designs like the Ornamental Autumn collection tailored for fall weddings. Additionally, 2025-2026 planners, such as the Romantic Greenery Weekly Desk Planner, are available online as Paper Source exclusives, incorporating features like monthly grids, ribbon bookmarks, and note pages not found in all physical formats. These digital-first products cater to personalized planning and event needs, broadening accessibility beyond store inventories.^[45]^[46]^[47] E-commerce contributes significantly to Paper Source's revenue, generating $18 million from papersource.com in 2024, with projections estimating 5-10% growth in 2025 amid broader retail shifts toward online sales. This digital channel supports the company's 117 physical stores by driving hybrid customer experiences.^[48]

Leadership

Founders and key executives

Paper Source was founded in 1983 by Susan (Sue) Lindstrom in Chicago, Illinois, with a vision to import and retail handcrafted papers and artisanal goods from around the world that she discovered during her travels.^[1] Lindstrom curated collections emphasizing craftsmanship, opening the first store as an elegant showroom for these unique items, and she remained at the helm guiding the company's early growth until its sale to Brentwood Associates in 2007.^[6]^[8] During the private equity ownership period under Brentwood Associates (2007–2013), Sally Pofcher was appointed CEO in 2007 to accelerate expansion, assembling a management team that focused on scaling the retail footprint and operations.^[8]^[10] Following the 2013 acquisition by Investcorp, Pofcher continued leading initially, emphasizing store growth and e-commerce development.^[14] In 2015, Winnie Park succeeded as CEO, transforming Paper Source into an omnichannel retailer by enhancing digital capabilities and opening a major warehouse facility.^[49] In the lead-up to and aftermath of the 2021 bankruptcy filing, Jenica Myszkowski served as COO, overseeing operations across 158 stores.^[4] She was appointed CEO in June 2021, shortly after Elliott Management's acquisition out of Chapter 11, where she directed post-bankruptcy recovery efforts, including cost restructuring, store optimizations, and integration with Barnes & Noble to leverage synergies in retail and supply chain.^[50] Under her leadership until 2023, Paper Source stabilized operations and introduced collaborative initiatives like shop-in-shops within Barnes & Noble locations.^[23] Following Myszkowski's departure in 2023, Henry Hadley succeeded as CEO, leading the company as of 2025.^[29] Since the 2021 acquisition, Paper Source has operated under the broader oversight of James Daunt, CEO of Barnes & Noble, who holds responsibility for strategic direction across both brands while allowing operational independence.^[51]

Notable employees and contributions

Melissa Brower, as Creative Director at Paper Source, has significantly influenced the company's design aesthetic and product lines through her work in art direction and creative campaigns. Her contributions include directing photography and content for monthly catalogs, as well as developing the HERstory campaign for Women's Empowerment Month, which used the brand's merchandise to narrate stories of diverse women and promote empowerment themes.^[52]^[53] In custom printing and event services, Fern Sinio has made notable impacts as a Custom Print Consultant, specializing in consultations that enable personalized client projects, such as bespoke wedding invitations and stationery suites. Her expertise has helped deliver tailored solutions that enhance customer experiences in the company's custom offerings.^[54] Post-acquisition, HR professionals like Alma Zuniga, serving as Regional Human Resources Manager, have supported team building and organizational development to stabilize and grow the workforce following the 2021 Elliott Management buyout.^[55] Early alumni in product sourcing, exemplified by former merchandising specialists, contributed to the brand's artisanal identity by pioneering international partnerships for unique papers and goods, setting the foundation for Paper Source's global-inspired collections.

References

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Wedding
### Wedding Invitations and Suites Summary
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