By Clyde Noel

Town Crier Correspondent

Parent company U.S. Office Products files for Chapter 11 bankruptcy protection

McWhorter’s, the local stationery store on Second Street, is going out of business. Its parent company, U.S. Office Products, filed for Chapter 11 bankruptcy protection May 22.

Chris Hughes, a supervisor in the McWhorter’s Los Altos store, said the employees were notified June 5, even though United Parcel Service was notified not to make deliveries two weeks before.

U.S. Office Products offered business units within the company organization for sale during the past month.

No company offered to purchase McWhorter’s, and it was sold to a liquidation company as the highest bidder.

It is expected liquidation will take two months, and large discounts will be offered on all merchandise.

Ed Anderson, supervisor, and Javier Rodriquez, customer service supervisor, said they are staying until the end of liquidation but are meanwhile looking for another job.

McWhorter’s is a Bay Area institution. Thomas J. McWhorter and J.E. Young opened their first store in San Jose in 1940. McWhorter sold his part of the organization to a group of new investors who opened additional McWhorter’s stores in the Bay Area, including Los Altos and Cupertino.

When Office Depot and Staples opened stores in the Bay Area, offering stiffer competition, McWhorter’s stores were sold to U.S. Office Products in 1996. The parent company was based in Washington, D.C.

Prior to the liquidation process, U.S. Office Products sold Mail Boxes Etc. to United Parcel Service (UPS).

McWhorter’s stores were noted for their back-to-school fund-raisers.

They also offered a discount to teachers, a practice that was discontinued after U.S. Office Products purchased the chain.

In 1996 the company gave more than $134,000 to 664 participating local schools.

McWhorter’s also provided a substation for the U.S. Postal Service, which it closed down in February 2000.

McWhorter’s customers complained and sent numerous letters to executives.

The chain relented and opened the postal doors a month later. Eventually, the postal service was closed without fanfare.

A notice on the McWhorter’s door at 303 Second St. says, “In compliance with Federal Bankruptcy law, we will no longer be able to accept payment by check, McWhorter’s charge, gift certificates, store credits and due bills.”

Any claims for reimbursement must be forwarded to U.S. Bankruptcy Court - District of Delaware. The Web site is www.deb.uscourts.gov.