Party City hit hard by Higher Helium Sourcing Costs
- AKAP
- May 9, 2022
- 5 min read
US listed Party City, which runs ~850 party stores across the US issued a profit warning which saw its stock fall as much as 64% on Monday. The company revealed US$2mm impact in Q1'22 from having to source higher priced helium and a US$12mm impact from freight and port fees. The expected helium impact in Q2'22 is expected to be US$7mm. Although it was able to keep its shops well stocked with helium, unlike in the previous shortage, this came at a steep cost. Its 8.75% bond, due 2026, was down about 10 cents on the dollar to 76.25 cents Monday afternoon, according to data compiled by Bloomberg. Party City had restructured its debt last February with a $750 million bond exchange, after battling store closures and fewer parties due to the pandemic.
