Party City Issues Filing For Bankruptcy Protection

Mega party supply shop Party City filed Apply for bankruptcy protection by Tuesday

Party City Holdco Inc. (PCHI), is the company. filed A press release stated that Chapter 11 Bankruptcy protections will be available for some of its domestic subsidiaries. release Tuesday. Other subsidiaries and Anagram are not affected by the bankruptcy proceedings. In November, the company employed a financial adviser.

Party City also announced that it had made a deal with an independent group to assist in the restructuring of its debt and cut costs. The company stated that the restructuring was underway. “[p]re-negotiated” And “[e]xpedited,” They expect it to reduce its debt and maximize its liquidity. It noted It received $150 million from an Ad-hoc Group that will enable it to keep its stores running. 

“In the face of pandemic headwinds, a global supply chain crisis, and other macroeconomic challenges that have faced our industry, we have made significant strides in PCHI’s ongoing transformation – establishing a solid foundation for long-term growth and continued success as the market leader in the celebrations space,” Brad Weston was the Chief Executive Officer at PCHI, according to the release. “Today’s action to strengthen PCHI’s balance sheet will bolster our ability to further advance our strategic priorities and continue to innovate and elevate the customer experience.”

“As we take this important step to put our business on stronger financial footing for the future, we are as committed as ever to inspiring joy by making it easy for our customers to create unforgettable memories. We appreciate the commitment of our team members and the continued support of our partners as we further enhance our position as the ‘go to’ one-stop-shop for celebrating life’s special moments,” Weston noted. 

Party City stores and its online site are still available for customers to shop at. The restructuring process is expected to take place in the second quarter this year, according the company. 

It also files motions to continue its daily operations. These motions include its requests to continue paying its workers and providing benefits. It also wants to “honor customer programs and policies.” 

Party City has seen a lot of growth, but it also has to deal with the growing popularity of major retailers and e-commerce companies, CNBC reported. It didn’t expand its online platform, but rather spent money maintaining 800 shops around the United States. 

“They’re competing against Walmart, and Target and Amazon and the dollar stores and grocery stores,” Joe Feldman is an analyst at Telsey Advisory Group. Since 2015, when the company went public, Joe Feldman used to cover Party City. But he stopped covering it at the end last year.