Party City filed for bankruptcy protection on Tuesday after years of losses and poor sales.
The largest retail chain specializing in Halloween parties in the United States said in a regulatory body filing It has reached an agreement with debt holders to reduce its debt burden of $1.7 billion.
The company said it has secured $150 million in financing that will allow it to keep its stores open and operate its operations. As of October, the company had 761 total city parties
(PRTY) Stores and 149 pop-up stores in Halloween City. In 2021, Party City
(PRTY) It had more than 16,000 full and part time employees.
Party City has struggled for years against competition for party goods and decorations from big box chains and online retailers. The advent of Spirit Halloween, a pop-up shop model, also lowered Party City sales during the main Halloween season.
The company has also had to contend with rising costs during the pandemic and Helium deficiency, which hurt balloon sales. The company said in a regulatory filing that the balloons are “a focal point of our growth strategy and are a key driver of our distinctive brand experience.”
Between 2017 and 2021, Party City sales fell 8% to $2.2 billion. The company expected sales to remain flat in 2022. The company also lost money every year between 2019 and 2021 and said it was on track to lose up to $199 million in 2022.
Party City said in December that it was at risk of delisting from the New York Stock Exchange because its stock had fallen below $1 per share for 30 trading days.
Other struggling retail chains are also present High risk of bankruptcy It’s 2023 as consumers cut back on their spending.
This month Bed Bath & Beyon issued a grim letter about its future, warning that a bankruptcy declaration is a possible outcome for the company.
There is “significant doubt about the company’s viability” due to its deteriorating financial situation.
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