Elliott Investment Management, the private equity firm that owns Barnes & Noble, has reached a definitive agreement to acquire the assets and business operations of Paper Source. One of the country’s largest stationery and gift retailers, Paper Source filed for bankruptcy in March.

In its release announcing the planned purchase, Elliott said B&N CEO James Daunt will oversee both B&N and Paper Source. Elliott added that while the two businesses will operate separately, “considerable opportunities exist for mutually beneficial retail partnerships.” In the announcement, Elliott also gave a vote confidence to Daunt, writing that B&N “has enjoyed a strong performance since its acquisition by Elliott in September 2019, overcoming a number of pandemic-imposed challenges.”

At the time of its bankruptcy filing, Paper Source operated 158 stores. Plans now call for the retailer to run about 130 outlets. The company also has a wholesale division, Waste Not Paper by Paper Source.

In a statement, Daunt called Paper Source “a wonderful brand,” and promised to help Paper Source’s management team “accelerate the brand’s strategic growth initiatives.” He added that the opportunities for Paper Source and B&N to work together are “tremendously exciting for both businesses.”