Alameda, CA-Party America, the 37-unit retailer of party supplies, announced they will acquire Paper Warehouse Inc., the 62-unit paper supply and paper goods stores which operate under the names Paper Warehouse, Party Universe and www.PartySmart.com, for $7 million. Paper Warehouse had recently filed Chapter 11 under bankruptcy protection, and U.S. Bankruptcy Court has approved the tentative agreement for the corporation to sell its 62 stores, its subsidiary Paper Warehouse Franchising and the PartySmart.com Web site to Party America, making it one of the largest party supply chains with over 135 locations in the United States. -Party America