Party City Holdings Inc. filed for Chapter 11 bankruptcy early Saturday, citing financial difficulties that have led to the “wind down” of its business and liquidation of its assets. The New Jersey-based retailer operates approximately 750 stores across the US.
In January 2023, Party City emerged from a previous Chapter 11 bankruptcy with $1 billion less in debt after restructuring. However, the company’s financial struggles have persisted, with Bloomberg reporting that it was considering a sale or second bankruptcy.
The current filing reports assets between $1 billion to $10 billion and liabilities of similar magnitude, indicating significant debt. The company has also struggled with store closures, with 18 confirmed closures in recent months, including those in Topeka, Kansas, and Wichita Falls, Texas.
Industry experts point to consumer pressure on budgets and the stress of affordability as major contributors to Party City’s downfall. Coresight Research CEO Deborah Weinswig notes that the current retail landscape favors store closings over openings, with 7,327 closures already this year.
The company’s latest bankruptcy filing comes after several warning signs, including a class-action lawsuit filed by former employees over September layoffs and disputes over tax breaks promised to the state of New Jersey.
Source: https://eu.usatoday.com/story/money/2024/12/21/party-city-closing-stores-bankruptcy/77106840007