Royal Paper, a large toilet paper supplier that produces and supplies products for a range of retailers, has filed for Chapter 11 bankruptcy. According to Bloomberg, Royal Paper made the announcement earlier this month.
As part of the Chapter 11 proceedings, Royal Paper approved a purchase agreement with Sofidel America Corp, which directs Royal Paper to sell “substantially all” of its business to Sofidel for $126 million, per Bloomberg. A judge still needs to approve the deal, and the deal is also open to a competing offer, the outlet states.
“Our team has been working diligently to strengthen our financial foundation in the face of difficult macroeconomic circumstances and other challenges facing Royal,” Steve Schoembs, chief executive of Royal, said in a statement. “Entering into an agreement with Sofidel provides stability for our business, its customers, and our employees, while we continue to run our sale process. I want to thank our incredibly talented employees for their continued focus and hard work, and our customers, partners, and suppliers for their support.”
As the proceedings continue, the company will still work under normal operations, it said in a statement.
“Royal is a vertically integrated tissue maker with manufacturing and distribution assets across the United States, producing bath tissue, paper towels, facial tissue and napkins for retail chains including Trader Joe’s, Aldi, Whole Foods, Kroger and Meijer,” Recycling Today notes of the company. “It also produces 100 percent recycled paper products under its Earth First brand, using 80 percent Grade A postconsumer recycled material.”
Recycling Today adds, “The company’s paper mill in Gila Bend, Arizona, features two tissue machines with approximately 61,000 metric tons of annual production capacity. It also has three converting facilities, two in Phoenix and one in Duncan, South Carolina. Warehousing and distribution centers are co-located with its converting facilities.”
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