Pier 1 Imports is reportedly preparing to file for bankruptcy and cut 40 percent of its staff.
Stationery chain Papyrus is reportedly closing stores across the country weeks before Valentine’s Day amid retailer struggles, according to a report by Retail Drive.
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Papyrus parent company, Schurman Retail Group, which also owns the American Greetings card brand, sent a letter to employees informing them that it would shutter all of its stores, and it hired liquidation firm, Gordon Brothers, to help with going-out-of-business sales, according to the letter obtained by Retail Dive. The company has more than 260 locations, according to its website.
Papyrus is reportedly closing stores across the country. (John Greim/LightRocket via Getty Images)
Some locations in New York City already had "everything must go" signs up in stores when FOX Business checked on Tuesday. A location on East 86th Street on the Upper East Side of Manhattan is offering 20 percent off on all merchandise to shoppers.
Papyrus said the store closures are due to the “current challenges of the retail industry,” it said in a statement to Retail Dive. It’s unclear if the store, which sells greeting cards, writing accessories and other paper goods will continue selling items on its e-commerce websites. .
Papyrus did not return a FOX Business request for comment.
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Greeting card revenue has shown steady growth over the past few years with the industry raking in around $933 million last Valentine's Day, up from $894 million in 2018, according to the National Retail Federation. And 6.5 billion cards are purchased each year, according to an industry report from 2012. So there's still demand for tangible cards even though consumers seem to be buying them primarily online with increased competition from companies like Shutterfly and Vistaprint that let people customize stationery and greeting cards and print them out or send them electronically.
More than 9,000 retail store closures were announced in 2019, which is about 55 percent more than the number of stores that shutdown in 2018, according to global marketing research firm Coresight Research. American Greetings was a publicly-traded company and went private in 2013 amid sales struggles.
Papyrus' announcement that it is closing its stores follows other recent retail closings.
Pier 1 Imports recently announced it would close up to 450 of its stores, and Bed Bath & Beyond sold nearly half of its real estate, including stores and a distribution center to a private equity firm. Last year, paper goods and craft supplier A.C. Moore’s parent company Nicole Crafts announced it would shutter all of its 145 stores. Payless Shoe Source and Dressbarn also closed locations last year.
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The average cost of a greeting card is between $2 to $4, and can cost upwards of $6 in some markets for brands like a Papyrus or Hallmark card. Some greeting card retailers have modernized over the years. Privately-held Hallmark Cards offers electronic cards that can be posted directly to Facebook charging customers $5 for a monthly subscription. The company says it has 30,000 employees worldwide and it generates $4 billion in revenue, according to its website. The company estimates that 1.6 billion cards are exchanged during the holidays alone.
The average cost of a greeting card is between $2 to $4 and can cost upwards of $6 at stores like Papyrus and Hallmark.
Papyrus, founded in 1950 by the Schurman family, opened its first location in 1973 in Berkeley, Calif. But the business of tangible greeting cards has become increasingly competitive with e-cards and social media platforms like Facebook, Instagram and Snapchat making it easier than ever to send a sentiment on demand. Etiquette experts say, however, that expressing a "happy birthday," "get well" or "thank you" on paper will always be the most personal.
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"I'm a big fan of hand-written notes," New York City-based etiquette expert and founder of Etiquette School of New York Patricia Napier-Fitzpatrick told FOX Business. "It takes two seconds to send a text to someone and, granted, it's better than nothing, but someone who takes the time to send a hand-written note shows their appreciation and that they care more."
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