Royal Paper says it will continue rolling out its products during the process
Key takeaways:
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Royal Paper, a key supplier for Trader Joes and Kroger, is filing for bankruptcy amid a planned asset sale
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The company says operations will continue as normal during the transition to new ownership
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Toilet paper remains a sensitive commodity for consumers, with pandemic-era shortages still fresh in memory
Royal Paper has filed for bankruptcy. Why should you care? Well, not to sow widespread panic buying but Royal supplies toilet paper and other paper products to Trader Joe's, Kroger and other major outlets.
The bankruptcy isn't necessarily a crisis for those without bidets or other cleansing methods though. It's part of a sale of the Arizona company's assets toSofidel America Corp., the companies announced.
The sale is subject to court approval but Royal said it "intends to move through this process while operating in the ordinary course providing the high-quality products that its customers and partners rely on."
"Our team has been working diligently to strengthen our financial foundation in the face of difficult macroeconomic circumstances and other challenges facing Royal, said Steve Schoembs, Chief Executive of Royal.
The company sells paper goods under a variety of brand names and store brands.
"Some (stores) 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," the company said.
A vital staple
Toilet paper is no small consideration for American consumers. During the early days of the COVID pandemic, supermarkets' paper goods shelves were bareas worried shoppers stocked up on vital supplies.
Driving the frenzy was the closure of many offices and institutions, where many consumers normally used on-site bathrooms. Those who suddenly began working from homefound themselves running through their paper goods supplies, sparking an anguished reaction comparable to the fear of infection.
Paper manufacturers were caught with their plans down and did not have vast quantities of home-style toilet paper in stock. The office variety typically comes in huge rolls and is thinner than the more luxe version preferred by homeowners.
Thus, there was an uncomfortable waiting period while supplies caught up with demand.
Posted: 2025-04-15 16:52:20
