The party isn’t over for Party City.
A US Bankruptcy Court has approved a debt restructuring plan that paves the way for the party supply store to emerge from Chapter 11 bankruptcy. The plan will reduce the retailer’s debt load by almost $1 billion.
“With our debt substantially reduced and Party City store portfolio optimized, we will emerge better positioned to advance our strategic priorities, continue to innovate and elevate the consumer experience, and pursue new growth opportunities,” said CEO Brad Weston in a release.
In addition to lopping off a massive chunk of debt, the company took multiple steps to stabilize its finances during the Chapter 11 bankruptcy process. This included negotiating more favorable lease terms on its 800 locations nationwide, according to the news release.
During a court hearing in Houston, Texas, Party City attorney Ken ZIman said that just a “handful” of locations will close, per a Reuters report.
The company declared bankruptcy at the beginning of 2023, citing slowing sales, pandemic-era lockdowns, inventory shortages, and a tight global supply of helium as headwinds.
It also appears that Party City is not yet spinning off its balloon manufacturing business Anagram, as Retail Brew previously reported.
Retail news that keeps industry pros in the know
Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.