Stock

Retailer Party City files for bankruptcy, will wind down 700 stores

1 Mins read

By Mrinmay Dey

(Reuters) – Party City, which has been struggling since the COVID-19 pandemic, filed for Chapter 11 bankruptcy protection in the United States on Saturday for the second time in two years as it plans to wind down its retail and wholesale operations.

The retailer, which has been in business for over 40 years and sells party supplies from themed decorations to Christmas costumes, said that all of its 700 stores in the country would remain open as it commences a going-out-of-business sale.

The company along with certain of its subsidiaries filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. In a filing with the court, Party City Holdco (OTC:PRTYQ) listed both assets and liabilities in the range of $1 billion to $10 billion and estimated to have more than 10,000 creditors.

Party City Holdco’s senior lenders would provide the retailer with financial support necessary to fund operations through the wind-down process, the Woodcliff Lake, New Jersey-based company said in a statement.

Troubled retailers often seek bankruptcy protection during the holiday season to take advantage of any cash infusion provided by recent sales.

Party City, which operates both brick-and-mortar stores and an e-commerce website, said it would retain most of its 12,000 employees during the sale period to assist with the wind-down process.

The company first filed for Chapter 11 bankruptcy protection in the U.S. in January last year. Later that year it reached a plan to exit bankruptcy, which saw a cancellation of about $1 billion in company debt.

The company has suffered since the pandemic due to lockdowns and store closures, along with inventory shortages and tight helium supplies due to global supply chain disruptions.

Amscan, a designer, manufacturer, and distributor of celebration products that is operated by Party City Holdco, also filed for bankruptcy on Saturday.

This post appeared first on investing.com

Related posts
Stock

How ETFs are remaking the market

1 Mins read
Investing.com — Exchange-traded funds are reshaping global markets with record-breaking growth. In 2024, the ETF industry reached $15 trillion in assets, saw…
Stock

Can Saudi markets weather an oil winter?

2 Mins read
Investing.com — Saudi Arabia’s financial markets face a challenging outlook as the nation grapples with the prospect of an “oil winter.”  Analysts…
Stock

Japan’s antitrust watchdog to find Google violated law in search case, Nikkei reports

1 Mins read
(Reuters) -Japan’s competition watchdog is expected to find Google guilty of violating the country’s antitrust law, Nikkei Asia reported on Sunday, citing…

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.