Elliott Investment Management L.P., which owns Barnes & Noble and British bookseller Waterstones, will acquire the assets and business operations of stationery and gift retailer Paper Source out of bankruptcy, the company announced.  James Daunt, CEO of Barnes & Noble and Waterstones, will run Paper Source along with the two booksellers.  Daunt, who had been CEO of Waterstones, took over Barnes & Noble after Elliott acquired it in 2019 (see "Barnes & Noble Sold to Elliott").

Synergies with Barnes & Noble were highlighted in the announcement, which noted that the businesses have shared product ranges.  The chains will operate independently, but "considerable opportunities exist for mutually beneficial retail partnerships," the company said.

Paper Source filed for Chapter 11 bankruptcy in March, but continued to operate its approximately 130 U.S. stores.  Vendors, many of them small companies, cried foul, charging that the company had placed large orders on credit just before filing, according to The New York Times.

The deal with Elliott allows Paper Source "…to emerge from Chapter 11 with the support of a well-capitalized owner committed to the development and growth of the business," the company said in its announcement.