Paper Goods Maker for Trader Joe’s, Kroger Files Bankruptcy (1)

Royal Paper, a maker of bath tissues, paper towels and napkins sold at Whole Foods, Trader Joe’s and Kroger, filed for bankruptcy and has agreed to a deal to sell its business.

The Phoenix, Arizona-based company and its corporate affiliates sought court protection Tuesday in Delaware, listing assets and liabilities each of between $100 million and $500 million in its Chapter 11 petition.

Sofidel America Corp. has entered into a so-called stalking horse purchase agreement to acquire “substantially all” of Royal Paper’s assets for $126 million, according to court papers. The stalking horse deal, which must be approved by ...