Party City Holdco. Inc. filed for Chapter 11 bankruptcy protection on Tuesday, citing COVID headwinds.
Dwindling sales during the COVID-19 lockdowns, difficulties in maintaining inventory, shortages of helium, and stores closing down could be among factors leading to the filing.
The company—which has 800 owned stores and franchises across North America—said in a press release that only its owned stores will be impacted by the filing, and the franchises, non-U.S. stores, and Anagram business will continue operations.
Party City secured $150 million for its “expedited restructuring” and for keeping up its operations, according to the release.
Based in Woodcliff Lake, New Jersey, the company said bankruptcy restructuring will allow it to lower its debt and free up cash….