Party City Facing Second Bankruptcy In 2 Years
The party may finally be over for one of the biggest retailers of balloons and costumes.
Party City Holdco Inc. is considering bankruptcy within the next couple of weeks for the second time in two years, Bloomberg reported, citing anonymous sources. It has stopped paying rent at some locations as its cash dwindles, according to the outlet.
The previous bankruptcy allowed Party City to wipe away a billion dollars of its $1.8B in debt and shutter 60 stores. This time, Party City's bankruptcy may result in the party supply retailer shutting down all of its 700 stores nationwide.
Party City — owned by creditors, including Silver Point Capital, that obtained the retailer after its 2023 bankruptcy — has struggled with sluggish sales for years. Its debt relief hasn’t been enough to counteract slow sales, according to Bloomberg. The company has also been hampered by a national helium shortage.
Party City is part of a wave of national retailers facing bankruptcy or liquidation, including Big Lots, Lumber Liquidators and Conn’s. Through November, retailers have shuttered more than 7,100 stores across the country, a 69% jump from the same period in 2023, CBS News recently reported, citing data from CoreSite. 45 retailers filed for bankruptcy protection this year, much higher than 25 in 2023.
Bloomberg reported that the timing of Party City’s potential bankruptcy is still in flux and that definitive plans may still change.
