Paper Source, Sold to Elliott, Gets Bankruptcy Case Dismissed

Paper Source Inc. has ended its bankruptcy case without confirming a Chapter 11 plan after selling all its assets and winding down its affairs.

Judge Keith L. Phillips of the U.S. Bankruptcy Court for the Eastern District of Virginia dismissed the case Thursday at the former stationery retailer’s request.

Chicago-based Paper Source filed Chapter 11 in March, felled by pandemic-related shutdowns. In May, Elliott Investment Management LP purchased the company out of bankruptcy for $40 million cash and the assumption of $51 million of debt.

Elliott, which also owns Barnes & Noble Inc., will continue to operate about 130 ...