Home Repair and Maintenance

Key takeaways:

• Royal Paper, a key supplier for Trader Joe’s and Kroger, is filing for bankruptcy amid a planned asset sale

• The company says operations will continue as normal during the transition to new ownership

• 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 to Sofidel 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 bare as 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 home found 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. 

The Consumer Financial Protection Bureau (CFPB) has finalized a rule to provide stronger protections for homeowners who take out Property Assessed Clean Energy (PACE) loans.

These loans, used for clean energy upgrades and disaster preparedness, are paid back through property tax bills. Due to concerns about homeowners being misled or taking on unaffordable loans, Congress required the CFPB to improve protections.

The new rule ensures that PACE borrowers receive the same standard mortgage disclosures as those applying for traditional mortgages. This will help homeowners compare PACE loans to other financing options and prevent them from being pushed into loans they cannot afford.

“Today’s rule stops unscrupulous companies and salespeople from luring homeowners into unaffordable loans based on false promises of energy savings,” said CFPB Director Rohit Chopra. “Homeowners deserve to know just how much they are paying when they put their home and financial future on the line.”

Most PACE loans are sold through door-to-door sales and often promise energy savings or disaster preparedness benefits. However, research shows PACE loans can lead to higher property taxes, higher interest rates, and an increased risk of falling behind on other mortgage payments. PACE loans tend to be more expensive than regular mortgages, with rates about five percentage points higher.

The CFPB has been closely monitoring the market and recently issued warnings about predatory solar loans. The new rule, effective March 1, 2026, aims to protect consumers from deceptive practices and ensure they have the information they need to make informed decisions.

Read CFPB's tips about PACE loans.