Party City's CEO Brad Weston said the pandemic and a global supply chain crisis were factors in the bankruptcy filing.
The company in a news release also listed multiple changes to Party City's business strategy, including:Evolving Halloween City pop-up storesBut the biggest stride the company noted is an agreement with the majority of its senior secured noteholders called the Ad Hoc Group. The group has promised $150 million in debtor-in-possession financing that will support the company's restructuring, Party City said.
The move will help the company complete an"expedited restructuring" to reduce its debt that should be done by the second quarter of 2023. The company has also asked the court for permission to maintain"business-as-usual operations" such as paying wages and providing benefits to employees. The money will also help Party City continue to honor customer programs such as store credits, special offers and promotions. Policies for returns, exchanges and refunds won't be impacted, the company said.that wholesale customers can expect normal delivery of orders.
"We will operate as usual and our supplier relationships will remain essential," the company said."Suppliers will be paid in the ordinary course for all authorized goods received and services provided after the filing date."
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Party City files for Chapter 11 bankruptcy protectionParty City Holdco Inc filed for Chapter 11 bankruptcy protection on Tuesday, becoming the latest casualty among U.S. retailers in the aftermath of the pandemic, as it struggled with low demand and increased competition from online buying.
Read more »
Party City files for Chapter 11 with $150 million DIP loan from bondholdersParty City Holdco Inc. filed for Chapter 11 bankruptcy protection late Tuesday in the U.S. Bankruptcy Court for the Southern District of Texas, according to...
Read more »
Party City Files for Bankruptcy With Plans to Cut DebtThe Woodcliff Lake, N.J., company said it has struck an agreement with a group holding more than 70% of its senior secured first lien notes to support an expedited restructuring.
Read more »
Party City Files for Bankruptcy to Restructure Piling DebtParty City and some of its U.S. units have filed for Chapter 11 bankruptcy, as the retailer looks to restructure its debt and better compete for sales as consumers’ wallets get hit by inflation. According to a filing, the company said it struck an agreement on Tuesday to reduce its debt. This is breaking news. Please check back for updates.
Read more »
Party City, amid rising prices, seeks bankruptcy protectionThe chain is planning an expedited restructuring that it said would substantially lower its debt and free up cash.
Read more »
Party City files for bankruptcy | CNN BusinessThe largest party goods and Halloween specialty retail chain in the United States filed for bankruptcy protection after years of losses and weak sales.
Read more »