Flawed Business Model Led Closure of Stationery Retailer Papyrus

Abstract

Papyrus, famous for greeting card and popular in Northern America as leading stationary chain closed down its operation in June 2020. Papyrus was brought into existence by Marcel and Margrit Schurman in 1950. It had a roaring business since its inception. Papyrus expanded during its heydays and set up over 500 stores across northern America. But organization failed to maintain its glory in digital age. Consumer preference and habits transformed significantly in technology driven time. Digital-based subscriptions, online greetings, instant messaging, pervasive use of social networking sites, social media made a severe dent in demand for greeting cards. Generation Y and Z are more into sending smileys and emojis to convey feeling and extend greetings. Even calendar, planner, schedule have mostly shifted to digital mode. Papyrus overlooked sign of new habits across generations and continued with physical store, greetings card, gift products and stationary items which were not viewed as environment friendly. Over the years, footfall reduced to Papyrus stores, revenue plummeted and it ended up filing Chapter 11 for bankruptcy protection in USA Bankruptcy Court in Wilmington, Delaware. The closure of Papyrus stores in 2020 resulted in unemployment of roughly 1,100 salaried and hourly workers.