The label was created to focus on the Toronto-area
indie rock music scene. Initial signings were
Broken Social Scene and
Stars with their breakthrough albums,
You Forgot It in People and
Heart. The label helped launch the careers of
controller. controller,
Tokyo Police Club, and
Austra, amongst many others. For two years, Paper Bag Records was given the title of 'Best Label' from Toronto's
Now Magazine in
Nows 2008 and 2009 issues. In the August 2007 issue of U.S. publication
XLR8R, Paper Bag Records was voted #14 for "Best Indie Label". Paper Bag Records launched their "Paper Bag Digital" online store in June 2008, which features their entire catalog for purchase and download in
mp3 and
FLAC formats. In 2009, Trevor Larocque made significant changes to the label's identity and image. In 2011, The
Toronto Star is quoted with a mention that the label is "having one of the best years of its existence" and in early 2012, Toronto's weekly paper
The Grid recognized the label as a "cornerstone of Canadian music." In September 2012, CBC Radio said the Paper Bag Records "could be the most influential label in Canada". New bands joined the label including
Elliott Brood, The Rural Alberta Advantage,
Born Ruffians, Young Galaxy,
Cuff the Duke, and PS I Love You. In 2012, the label announced that Montreal artists
Tim Hecker,
Moonface (
Spencer Krug),
Yamantaka // Sonic Titan, and
The Luyas were joining its roster. Larocque would sell and leave the label in 2023 after 22 years of being involved. The Paper Bag Records series of
vinyl releases were produced in very limited quantities, each being between 300–500 copies. They were released on colored 180-gram vinyl with silk-screened artwork. Paper Bag Records played host to the first
Independent Label Market event in Canada during the
NXNE 2013. ==Awards and nominations==