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(Bloomberg) — The Papyrus alternation of art-inspired allowance cards and adorned cardboard accessories will shut bottomward afterwards declining to acquisition a client to accomplishment the aggregation and its sister stores, American Greetings and Carlton Cards.

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Owner SFP Franchise Corp. filed for defalcation with affairs to appoint liquidators to run going-out-of-business sales at its 254 stores, which includes the Cardboard Destiny brand.

The aggregation employs about 1,100 bodies and has assets account $39.4 actor and debts of $54.9 million, according to cloister affidavit filed Thursday. SFP traced its defalcation to a 2009 deal, adage it saddled the alternation with the aerial costs of closing food and an access in the amount of products.

In 2009, as SFP was struggling, it traded the Papyrus name and its broad business to American Greetings Corp. for that company’s retail operations. The accord larboard Papyrus as a abundance abettor with 500 locations in the U.S. and Canada. And Papyrus became abased on American Greetings to accumulation abundant of the cards and added items awash in those stores.

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American Greetings Corp., which isn’t in bankruptcy, produces greeting cards beneath the Papyrus cast and added acclaimed gift-card names. American Greetings Corp. sells its cards, balloons, candles and added accessories to retailers like SFP.

In the aftermost two years, SFP approved to accommodate bigger agreement from suppliers and landlords. It additionally began exploring a sale, according to cloister papers. The aggregation and American Greetings “worked cooperatively to abode operations and banking issues,” until December, back American Greetings accused it of behind on their agreements.

The altercation acquired the company’s lenders to cut off costs and acknowledge their own default. Back SFP bootless to acquisition a buyer, it filed defalcation with affairs to appoint a apache to shut bottomward its food and run going-out-of-business sales in adjustment to move as abundant of its actual artefact as possible.

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“The proposed liquidation, consisting of essentially all of their assets, will accommodate the greatest accretion for their creditors,” SFP said in cloister papers.

The case is In re SFP Franchise Corp, 20-10134 U.S. Defalcation Court, District of Delaware (Wilmington).

To acquaintance the anchorman on this story: Steven Church in Wilmington, Delaware at [email protected]

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To acquaintance the editors amenable for this story: Rick Green at [email protected], Dawn McCarty, Christopher DeReza

For added accessories like this, amuse appointment us at bloomberg.com

©2020 Bloomberg L.P.

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