Royal Paper, one of the biggest toilet paper suppliers, files for Chapter 11 bankruptcy
Royal Paper, a prominent manufacturer of paper products, filed for Chapter 11 bankruptcy protection in April 2025 to facilitate the sale of its assets.
Royal Paper, a leading manufacturer and supplier of paper products such as toilet paper, paper towels, and napkins has filed for Chapter bankruptcy protection in April 2025. The filing, which will facilitate the sale of the company's assets, has identified Sofidel America Corp. as the primary bidder, potential becoming the next week owner of the company.
Before the Covid-19 pandemic, Americans never questioned the availability of toilet paper. Now, people have to think about their toilet paper supply again as a major manufacturer.
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Royal Paper has filed for bankruptcy in the U.S.
Founded in Phoenix in 1992, Royal Paper built a solid reputation for offering high-quality, sustainable products at competitive prices. Since then, the company has been producing paper products such as paper towels, toilet paper, and more for various retail brands home categories.
Royal Paper has always focused on sustainability, quality and competitive pricing, which has given it a positive reputation among customers. Its retail brands, like Earth First, SuperSoft, and EcoFirst, became preferable options for consumers in no time.
The company filed for bankruptcy in the U.S. Court on April 8, 2025, and has opted to sell its assets effectively under section 363 of the bankruptcy code. The filing details can be accessed here.
Steve Schoembs, CEO of Royal Paper, praised the diligent efforts of the team in facing the economic and other challenges. Legal counsel for the company is Morris, Nichols, Arsht & Tunnell LLP, with Novo Advisors serving as the financial advisor, and Livingstone Partners acting as the investment banker.
Toilet paper brands from Royal Paper will disappear. Photo: LR composition.
Who will be the next owner of Royal Paper?
As Royal Paper has entered the bankruptcy protection situation amid rising challenges, the brand plans to exit it by transferring ownership.
Through the signed Asset Purchase Agreement (APA) with Sofidel America, the company hopes to secure its future stability. As per this agreement, Sofidel will be the "stalker horse bidder." If no superior offers emerge, Sofidel will assume ownership of Royal Paper once the court approves the sale.
The court's supervision and approval will be considered final in the whole process. Through this process, Royal Paper will continue with its normal business operations.
The company has received a debtor-in-possession (DIP) financing. This will avoid a situation of ceased operations. The secured lenders will look after the finances during the bankruptcy process. Vendors, suppliers, and other stakeholders will get their payments as per normal terms and conditions.