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.
Party City hit hard by Higher Helium Sourcing Costs
Want to read more?
Subscribe to www.akapenergy.com to keep reading this exclusive post.