Essential bathroom product supplier files Chapter 11 bankruptcy
The company has flushed a lot of cash down the toilet, but it might be able to clean things up.
There are some products that we take for granted until they disappear from store shelves.
Before the Covid pandemic, Americans never questioned the availability of toilet paper. It was always there, and while we might complain about how many plys it has or lament the poor quality of the toilet paper used in offices, we never had to worry about resorting to other methods.
Related: Huge furniture company closing forever, laying off staff
Very few American homes have bidets or any other alternative method of cleaning up after a visit to the toilet. That put people into a panic when toilet paper became hard to find during the early lockdown periods of the Covid pandemic.
That did not occur because people were hoarding toilet paper (although they were). It was a byproduct of the change in demand.
People used to meet some of their bathroom needs at the office. The toilet paper for offices is thinner in order to not clog the toilets, and comes in those giant rolls.
It took months for the companies that make toilet paper to adjust to the heavier demand for the at-home variety. During the darkest days of the shortages, you could actually always go to Staples or Office Depot to buy big rolls of office toiler paper.
Now, Americans may have to think about their toilet paper supply again as a major manufacturer has filed for Chapter 11 bankruptcy protection. Image source: Pixabay.
The bottom line on Royal Paper
You may not know Royal Paper, but chances are your intimate regions do.
"Over the past three decades, Royal Paper has been the trusted manufacturer of Private Label, Retail Brands and Away-From-Home Brands. We produce bath tissue, paper towels, facial tissue, and napkins for those who demand sustainability, flexibility, competitive pricing, and uncompromising quality," the company shared on its website.
The company serves as a third-party manufacturer for major grocery chains including Aldi and produces its own lines of toilet paper.
"Some prefer to carry one of our proven retail brands like Earth First, SuperSoft, and EcoFirst. Others want to build their brands by working with us to create their own private label brand. Whichever you choose, you can rest assured knowing you’ll be getting the products you need in the configurations your customers demand," it added.
Those retail brands aren't exactly Charmin or Angel Soft, but the company has a very broad reach in the toilet paper space.
Retail closings:
- Iconic retail chain closing nearly 500 stores
- Another discount retailer closing over 1,000 stores
- Another struggling mall retail chain closing more stores
Royal Paper has tried to operate as a sustainable brand while meeting customer needs.
"Just because we are committed to sustainability in everything we do, does not mean we lose sight of what’s important to you – product performance, reliability and flexibility. In fact, we take great pride in our 98% on-time delivery record and ability to work with our partners to provide a wide range of package sizes and cost structures," it shared.
Don't flush on Royal Paper just yet
Royal Paper has entered Chapter 11 bankruptcy but has a plan to emerge from it under a new owner/
The company has entered into an Asset Purchase Agreement (APA) with Sofidel America Corp., under to which Sofidel will acquire substantially all of Royal Paper's assets.
"To facilitate the transaction, Royal has filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. This action is expected to provide for a quick and orderly sale of the company's assets under Section 363 of the Bankruptcy Code, with Sofidel serving as the 'stalking horse bidder' in a court-supervised auction and sale process," the company shared in a press release.
Related: Walmart's Sam's Club has good news for members, not Costco
Other buyers could emerge and make bids on the assets.
The company expects to continue its normal business operations during the bankruptcy period.
"Royal has received a commitment for debtor-in-possession (DIP) financing from its existing secured lenders to support the business through the sale process. The company intends to pay vendors, suppliers, and other trade creditors in full under normal terms for goods and services provided during the bankruptcy case," it shared in the filing.
