Brentwood Associates builds Paper Source into leading specialty stationary store

Stationary company Paper Source has developed a cult following of artists and DIY mavens taken with the company’s unique, and often irreverent, paper and stationary offerings since its founding in 1983. While the company had a loyal following, the corporate structure needed work, according to a recent Chicago Tribune article.
Brentwood Associates, a Los Angeles-based consumer brand private equity firm, purchased a majority stake in Paper Source in 2007 and quickly hired CEO Sally Pofcher to turn the company around.
“We knew behind the store there was great creativity, but the company needed organization and systems and planning,” Roger Goddu, a partner at Brentwood Associates and chairman of Paper Source, told the Chicago Tribune. “Sally is a very hands-on CEO in terms of understanding all aspects of the business and the nuances that aren’t so obvious. There’s nothing going on in that company that she doesn’t know.”
With Paper Source’s corporate structure under control, the next step is expansion. Prior to the involvement of Brentwood Associates, the company had never opened more than three stores in one year. The firm aims for Paper Source to open ten new locations per year. Eight opened in 2010, and the company is on track to open 12 stores this year. In an effort to reach customers better, the firm also worked with Paper Source to develop an online store, catalog business and a small wholesale division.