Party City Files for Bankruptcy After Pandemic Recovery Falters

Party City Holdco Inc. is seeking bankruptcy protection, a final blow for the retailer which struggled to rebound after sales plummeted during the pandemic.

(Bloomberg) — Party City Holdco Inc. is seeking bankruptcy protection, a final blow for the retailer which struggled to rebound after sales plummeted during the pandemic.

The firm filed Tuesday for Chapter 11 bankruptcy in the Southern District of Texas, court documents show. It listed assets of $1 billion to $10 billion and liabilities in the same range.

The New Jersey-based party supplies retailer was struggling even before Covid-19. The pandemic added to strains as social distancing quashed the festivities that are the company’s lifeblood. It also faced other hurdles: a helium shortage hurt its sale of balloons, while supply chain issues and wary consumers dragged on earnings.

The company undertook a series of financial maneuvers to buy itself time to bounce back during the pandemic, but sales have lagged below pre-pandemic levels. In recent weeks, it began laying the groundwork for a bankruptcy filing, Bloomberg reported.

–With assistance from Andrew Monahan and Victoria Batchelor.

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