FRAMINGHAM – Acton-based The Paper Store filed for bankruptcy in U.S. District Court in Worcester on Tuesday, July 14.
The specialty gift store chain, which operates 86 stores, is a family-owned company. The company furloughed almost 400 full-time and more than 550 part-time employees due to the pandemic.
“The filing of these chapter 11 cases has been caused by the Covid-19 crisis,” Chief Restructuring Officer Don Van der Wiel wrote in the court paperwork.
“It is the hope and goal of the debtors, through the consummation of the anticipated going concern sale, to reemploy all of the approximately 2,000 employees who previously worked for The Paper Store,” according to the court filing.
The company is hoping for a cash-infused sale this summer.
The Acton-chain listed Hallmark Cards as one its largest unsecured creditors at almost $1.3 million.
The Paper Store was founded in 1964. The company had $167 million in revenues in 2019.
The Paper Store has a location in Shoppers World in Framingham.