Party City set to Exit Bankruptcy with $1bn Debt Reduction
- AKAP
- Sep 6, 2023
- 2 min read
Party City Holdco's Chapter 11 bankruptcy plan has been approved by a U.S. bankruptcy judge, resulting in the cancellation of ~US$1bn in company debt and the transfer of all equity value to lenders. While the party supplies retailer will emerge from bankruptcy as a stronger business, a few of its 800 stores will close, but thousands of jobs will be preserved. The bankruptcy, filed in January, was attributed to factors such as high inflation, the COVID-19 pandemic's lingering effects, and helium sourcing difficulties for its party balloons. Party City is one of the largest buyers of balloon grade helium in the US, alongside Dollar Tree.