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Paper Zone Files Chapter 11
Posted by: admin | May 18, 2007
Paper Zone LLC, which operates 12 retail stores and two online stores under the names of Paper Zone and Memories, filed for Chapter 11 bankruptcy protection in the Western District of Washington U.S. Bankruptcy Court.
In 2005, Paper Zone, which is headquartered in Seattle, bought the 16-store Memories chain from Memories & More, but the company has since closed most of those stores, with the exception of two in Utah. There are seven Paper Zone stores in Washington and three in Oregon. In bankruptcy filings, the company blames the declining scrapbook market, difficulty converting Memories stores to the Paper Zone information technology system, and the unsuccessful attempt to convert some Memories stores to the Paper Zone format.
According to the petition for Chapter 11 protection, the company owes approximately $5.4 million to various creditors, but has total assets of approximately $3.2 million. There are more than 400 unsecured creditors who are owed a total of $3.1 million.
Topics: Industry News |
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