Paper Source Bankruptcy Squeezes Small Greeting Card Sellers
- Chain placed outsized orders in months before bankruptcy
- Chapter 11 filings often delay and diminish vendor repayment
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The bankruptcy filing of Paper Source Inc. is squeezing small vendors the stationery chain uses to stock its shelves with greeting cards.
Paper Source placed unusually large orders with greeting card suppliers in the months and weeks preceding the bankruptcy, according to interviews with two vendors and an outpouring of online complaints. The bankruptcy filing means that payment for those orders may be delayed and, in some cases, possibly never repaid in full.